![img-0.jpeg](img-0.jpeg) # SUPR # The specialist grocery property investors Supermarket Income REIT plc | Annual Report 2026 --- SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 # We are SUPR ## Who we are **Supermarket Income REIT plc (LSE: SUPR, JSE: SRI) is dedicated to investing in mission-critical grocery property.** Our stores are let to leading supermarket operators in the UK and Europe, diversified by both tenant and geography. We are the largest UK-listed landlord of supermarkets in the UK. ## Our purpose We create sustainable, long-term value through owning high-quality, grocery-anchored real estate that is critical to national food infrastructure and serves local communities as essential retail. ## Contents ### Strategic Report - 2026 highlights...1 - Investment case...2 - Portfolio at a glance...3 - Chair's statement...4 - Chief Executive's review...6 - Our markets...8 - Our business model...12 - Our strategy for growth...13 - Key performance indicators...14 - Strategy in action...15 - Our portfolio...17 - Financial review...21 - Delivering sustainable long-term value...25 - Our stakeholders & Section 172(1) statement...29 - Risk management and internal controls...33 - Our principal risks...34 - Going concern and viability statement...38 ### Governance Report - Chair's letter on corporate governance...41 - The Board of Directors...43 - Senior Management Team...45 - Leadership and purpose...47 - Division of responsibilities...51 - Composition, succession and evaluation...54 - Audit, risk management and internal control...55 - Audit and Risk Committee Report...56 - Nomination Committee Report...62 - ESG Committee Report...67 - Remuneration Committee Report...69 - Directors' Remuneration Policy...75 - Annual Report on Directors' Remuneration...79 - Directors' Report...85 - Directors' responsibilities statement...88 ### Financials - Independent auditor's report to the members of Supermarket Income REIT plc...90 - Consolidated statements...98 - Notes to the consolidated financial statements...103 - Company financial statements...136 - Notes to the Company financial statements...138 - Unaudited supplementary information...141 ### Additional Information - EPRA performance indicators...146 - Streamlined Energy and Carbon Reporting...147 - Task Force on Climate-related Financial Disclosures...149 - Glossary...161 - Contact information...162 ![img-1.jpeg](img-1.jpeg) **Visit us online** supermarketincomereit.com Cover image: Sainsbury's, Ashford --- 1 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information # 2026 highlights We aim to provide investors with a combination of attractive, secure and growing income with potential for long-term capital growth. ## Financial highlights ### EPRA earnings per share 5.7p | FY26 | 5.7p | | --- | --- | | FY25 | 6.0p | ### EPRA cost ratio 9.2% | FY26 | 9.2% | | --- | --- | | FY25 | 13.0% | ### Dividend per share 6.18p | FY26 | 6.18p | | --- | --- | | FY25 | 6.12p | ### Dividend yield¹ 7.0% | FY26 | 7.0% | | --- | --- | | FY25 | 7.2% | ### Total shareholder return 9.3% | FY26 | 9.3% | | --- | --- | | FY25 | 24.0% | ### Total accounting return 7.5% | FY26 | 7.5% | | --- | --- | | FY25 | 7.2% | ### EPRA NTA per share 87.5p | FY26 | 87.5p | | --- | --- | | FY25 | 87.1p | ### Loan to value 43.9% | FY26 | 43.9% | | --- | --- | | FY25 | 31.1% | ## Operating highlights² ### Portfolio value £2.0bn | FY26 | £2.0bn | | --- | --- | | FY25 | £1.6bn | ### Portfolio NIY 6.0% | FY26 | 6.0% | | --- | --- | | FY25 | 5.9% | ### Portfolio WAULT 11 yrs | FY26 | 11 yrs | | --- | --- | | FY25 | 11 yrs | ### Occupancy and rent collection³ 100% | FY26 | 100% | | --- | --- | | FY25 | 100% | Waitrose, Winchester 1. Using share price of 87.9 pence as at 30 June 2026 2. Portfolio metrics include the Company's 50% stake in the joint venture and financial assets held at amortised cost 3. Subject to rounding --- 2 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information # Investment case We are leading specialist grocery property investors. ![img-2.jpeg](img-2.jpeg) Grocery sector is resilient and growing - Grocery spend is non-discretionary and resilient to economic cycles - In 2025, UK grocery market sales grew by 4.3% to £256bn according to IGD - The sector has proven remarkably resistant to disruption, with physical stores remaining critical to grocery fulfilment, supporting the growth of online and rapid delivery channels Sector specialism gives us a unique advantage - Investing in high-quality, mission-critical grocery real estate - Focused on mission-critical assets that are an integral part of the operators' networks - Deep sector expertise and strong relationships with the grocers allows SUPR to unlock value for shareholders Highly secure and excellent visibility of income - Long-dated triple-net leases - 81% of rental income is inflation-linked, providing stable, predictable income - 100% occupancy and 100% rent collection since IPO in 2017¹ Growing store revenues provide sustainable rental growth - Omnichannel supermarkets remain a key driver of sales growth - SUPR's largest tenants, Tesco and Sainsbury's, continue to perform well, with Tesco's food sales and Sainsbury's grocery sales both increasing by 5.2% in FY26 Highly efficient operating model - One of the lowest EPRA cost ratios in the sector - EPRA cost ratio set to reduce further as SUPR scales - Targeting <9% in the near term Multiple avenues to grow the portfolio - Leveraging sector specialism to target high-quality assets with strict investment criteria - Track record of delivering growth through JVs and portfolio acquisitions - Well positioned to capitalise on a range of compelling grocery real estate opportunities across core UK assets, alongside distribution, convenience and new geographies → Read more on page 8 → Read more on page 12 → Read more on page 17 → Read more on page 9 → Read more on page 22 → Read more on page 7 1. Subject to rounding --- 3 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information # Portfolio at a glance¹ We have built a unique portfolio of grocery assets, diversified both by geography and tenant. Our properties are mission critical to our grocery tenants, operating as key online fulfilment hubs as well as generating in-store physical sales. ## Our portfolio in numbers ### Supermarkets 131 ### Portfolio net initial yield (“NIY”) 6.0% ### Omnichannel stores² 89% ### Inflation-linked reviews 81% ### Rent collection since IPO³ 100% ### Occupancy since IPO³ 100% The Company continues to build on its existing portfolio of strong trading, mission-critical omnichannel supermarkets backed by leading grocery operators. These assets form a key part of our tenants’ last mile fulfilment networks and help to capture both online and in-store shopping. ## Geographic diversification ![img-3.jpeg](img-3.jpeg) ### Portfolio weighted by rental income based as at 30 June 2026 | Tenant | Exposure by rent | | --- | --- | | Tesco | 39% | | Sainsbury’s | 24% | | Carrefour | 11% | | Asda | 8% | | Waitrose | 5% | | Morrisons | 4% | | Aldi | 1% | | M&S | 1% | | Non-food | 7% | | **Total** | **100%** | | Indexation | Income mix by rent review type | | RPI | 55% | | CPI | 15% | | ILC | 11% | | Fixed | 2% | | OMV | 17% | | **Total** | **100%** | 1. Including Group’s share of assets owned by the joint venture 2. By value 3. Subject to rounding --- 4 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information # Chair's statement "With a clear strategy for growing our shareholder-aligned operating platform and a high-performing team of sector specialists, the Company is well-positioned to capitalise on the compelling opportunities within grocery real estate." Nick Hewson | Chair ![img-4.jpeg](img-4.jpeg) ## Dear Shareholder, I am pleased to present SUPR's results for the year ended 30 June 2026, its first full year with an internalised management structure that has transformed the Company into a highly efficient, scalable company to deliver growing returns for you, our shareholders. It was particularly encouraging to see shareholders' support for SUPR in July 2026, through a successful £100 million equity raise. During the year, the team has made substantial strategic progress focused on driving long-term value for shareholders. The net proceeds realised from the transfer of assets to the Company's strategic joint venture with funds managed by Blue Owl Capital (the "JV") have been efficiently recycled into earnings-enhancing acquisitions, supporting our sustainable dividend, with a growth target of at least 2% per annum from FY27. Alongside this, the Company enhanced its capital structure through its debut bond issuance in July 2025 and continues its disciplined approach to managing leverage prudently, completing a £445 million debt refinancing post year end in July 2026. The market has also increasingly recognised the progress made by the Company, with shares more recently trading broadly in line with NTA, up from a discount that peaked at 25%¹ a little over a year earlier. This positive share price response reflects our consistent delivery against the strategic initiatives first set out in November 2024, namely reducing the cost base, recycling capital and enhancing earnings for shareholders. Since internalisation, the Company has delivered a total shareholder return of 27.5%², reflecting the benefits of the enhanced alignment, efficiency and strategic flexibility of the internalised management platform. A defining feature of the year has been the Company's ability to identify and execute attractive acquisition opportunities while maintaining investment discipline. During the year, SUPR completed £454 million of acquisitions, and a further £222 million³ post year end, having successfully deployed the proceeds of the July 2026 equity raise. We continue to see supportive tailwinds for rental growth across the portfolio, with the major supermarket groups again benefiting from resilient consumer demand, rising sales and robust profitability, while their stores remain the backbone of their operating models. The internalisation of the management function was a key milestone for the Company and has delivered meaningful benefits for shareholders. It has enabled significant cost reductions, with the EPRA cost ratio falling from 13.6% prior to internalisation to 9.2% today. The benefits of the new structure have continued to come through during FY26, with the Company on track to deliver an EPRA cost ratio below 9% in the near term. ## Dividend The Board remains focused on delivering sustainable and growing dividends for shareholders. The Company's investment activity, combined with operational efficiencies and the successful deployment of the new equity proceeds, has strengthened the earnings base. On behalf of the Board, I am pleased to recommend a target dividend of 6.30 pence for the year ending 30 June 2027, a 2% increase, which is in line with our minimum annual growth target communicated at our interim results. 1. Based on a share price of 65.5 pence as at 24 January 2025 2. Total shareholding return from 26 March 2025 to 30 June 2026 3. Including five assets for which the Company has exchanged contracts to acquire --- 5 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information # Chair's statement continued ## Governance and Board During FY26, the Nomination Committee, led by Sapna Shah, has continued its succession planning. Vince Prior will step down following this year's AGM, having come to the end of his nine-year period on the Board. Vince has been with the Company since its inception and has played a significant role in the evolution, growth and success of the business and on behalf of the Board I would like to extend my sincere thanks to him. Following a period of very positive but intensive change for the Company over the last 18 months, the Nomination Committee has, following consultation with key shareholders, asked me to extend my tenure as Chair for up to two years until the 2028 AGM, subject annual to shareholder approval. Further detail can be found in the Nomination Committee report on pages 62 to 66. During the year, the Remuneration Committee reviewed Executive Director salaries with a view to moving them towards market over time. Further details of the review, the shareholder consultation exercise and conclusions are provided in the Directors' Remuneration Report on pages 69 to 84. ## Outlook The grocery sector remains an attractive and growing market, and we continue to see opportunities to deliver meaningful growth. The Company enters the new financial year with a more efficient cost structure, an enhanced operating platform and a compelling pipeline of opportunities. The recent equity raise, now successfully deployed, also demonstrates investor support for the Company's growth strategy and further broadens the shareholder base. I would like to thank our shareholders for their continued support, and our team for their commitment and hard work during another active year. I look forward to updating the market on our progress as we continue to execute our strategy and deliver long-term value for shareholders. **Nick Hewson** | Chair 15 September 2026 ![img-5.jpeg](img-5.jpeg) --- 6 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information # Chief Executive's review "Over the past 18 months, we have transformed SUPR into a more efficient, scalable platform that is fully aligned with our shareholders and built to achieve long-term sustainable growth." Rob Abraham | Chief Executive Officer ![img-6.jpeg](img-6.jpeg) FY26 has been a year of strong strategic delivery. Building on last year's transformation, we have used our established and scalable platform to grow our property portfolio, improve the quality of our earnings and cement our position as the leading specialist investor in grocery real estate. Our ambition and strong alignment with shareholders is reflected in our focus on delivering a sustainable and growing dividend, underpinned by a minimum growth target of 2% per annum. The strength of SUPR's proposition was further recognised by investors' support for a £100 million equity raise, completed shortly after the year end, and representing a real vote of confidence in our team and the successful execution of our strategy. ## A growing, resilient sector The success of our model is underpinned by the fact that grocery is a growth sector. Food is a non-discretionary, everyday essential, and demand has proven remarkably resilient through inflationary pressures and geopolitical uncertainty. With operators able to adjust pricing to help offset increased costs, the sector has continued to perform strongly. UK grocery sales grew by 3.2% in the 12 months to June 2026¹, ahead of the food inflation rate of 1.7% for the same period². It is a market that is very difficult to disrupt, and our high-quality, mission-critical stores sit at the very heart of our tenants' business models. Large-format stores continue to be the dominant sales channel, offering consumers both a much wider product range but also much better value. Our focus on omnichannel stores ensures our portfolio continues to capture the growth in online sales, which now accounts for 12.6%³ of the total grocery market. The majority of online sales growth continues to be delivered from retailers' existing store estates, rather than from dedicated fulfilment centres. For example, Tesco grew online sales by 11% in FY26, including growth of 51% for its quick commerce offering, Tesco Whoosh⁴. EPRA cost ratios (including direct vacancy costs): FTSE 350-listed REITs ![img-7.jpeg](img-7.jpeg) 1. Kantar UK grocery sales growth for the 52 weeks to 14 June 2026 2. CPIH food and non-alcoholic beverages inflation rate for the 12 months to June 2026 3. Kantar: UK online grocery market share for the 12 weeks to 14 June 2026 4. Tesco Preliminary Results 2025/26 published 16 April 2026 --- 7 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information # Chief Executive's review continued ## A growing, resilient sector continued These mission-critical stores deliver highly secure income. Our long-dated, predominantly triple-net, inflation-linked leases place responsibility for property costs and maintenance with tenants, giving us reliable and growing cash flows. ## A low-cost, efficient platform Our efficient platform continues to deliver one of the lowest cost ratios in the sector. Internalisation has allowed us to bring our EPRA cost ratio down to 9.2% from 13.6% in December 2024, and we remain on track to achieve our goal of a ratio below 9%. As a highly efficient, low-cost model, we expect this ratio to fall further as the business grows, benefiting from operational leverage and directly enhancing shareholder returns. ## An established platform for growth Our sector specialism and robust balance sheet give us the capacity and flexibility to grow. We scaled our JV with Blue Owl to £855 million and completed £454 million of earnings-enhancing acquisitions at a blended net initial yield of 6.5%. The team's deep grocery expertise allows us to identify attractive opportunities where the quality of the underlying real estate, store performance and lease structure support long-term value. Our investment in 10 Asda stores is indicative of this disciplined approach, adding high-quality grocery assets let to an operator with significant scale. A full case study is included on page 15. We have also continued to diversify the portfolio, both by format with the acquisition of 10 Sainsbury's convenience stores, and by geography as we further expanded into France with 20 additional Carrefour supermarkets. Shortly after the year end, we successfully completed a £100 million equity raise, which is a clear endorsement of shareholder trust in our team and the continued attraction of the grocery real estate sector. The proceeds facilitated the acquisition of a highly attractive pipeline of over £222 million across nine assets$^{1}$ in the UK, including our first grocery distribution facility, strengthening our position as we deliver enhanced earnings growth. Looking forward, while UK omnichannel supermarkets remain the core driver of the business, we continue to explore further geographies and grocery distribution warehousing, using our specialism and tenant relationships to access the wider grocery real estate universe. ## Active asset management Beyond acquisitions, our team creates further value through active asset management. Post year end, we renewed the leases on two stores, extending terms to 15 years from an average of seven, with a modest 7% average rent reduction putting them broadly in line with ERV, and the introduction of inflation-linked reviews on one of the sites. These renewals helped to maintain our portfolio WAULT and yet again prove the importance of large-format stores to the operators. Our grocery-anchored sites are increasingly sought after by a broad range of retailers wanting to locate alongside our strong-trading supermarkets, drawn to the footfall our stores generate. The Company is working in partnership with Lidl, delivering a 12,000 sq ft extension to create a new 22,000 sq ft store. Construction commenced in March 2026 and is expected to complete in December 2026. This reflects the quality of our locations and illustrates the embedded value we can unlock across the portfolio estate. A full case study is included on page 16. ## Delivering on our sustainability priorities The Company remains committed to responsible investment and long-term value creation. During the year, the Company continued to enhance its sustainability strategy and related disclosures. This included the publication of its annual Sustainability Report, outlining performance over the period and achieving an EPRA Sustainability Best Practices Recommendations ("sBPR") Gold Award for the second consecutive year. Progress included strengthening our engagement with tenants on energy performance and enhancing ESG data collection processes to improve the completeness and accuracy of the Company's GHG inventory and support the continued implementation of its Climate Transition Plan. The Company's approach continues to be underpinned by transparency and external validation, including the third year of external assurance over its reported location-based Scope 1, 2 and 3 GHG emissions. The Assurance Report is available on the Sustainability section of the Company's website. Further details are provided in the Company's standalone Sustainability Report. ## Outlook SUPR is now in a stronger position than ever to deliver long-term sustainable growth in a way that is fully aligned with shareholders. Our scalable and efficient operating platform leverages the deep grocery sector expertise and industry relationships within our team to unlock attractive, earnings-enhancing investment opportunities in a growing and highly resilient sector. We have a pipeline in excess of £500 million, access to capital and the right team to deliver it, supporting a sustainable target minimum dividend growth of 2% per annum from FY27. With the joint venture scaled to £855 million and the size of opportunity ahead, we remain focused on growing at pace. I am confident that we will achieve our ambition of doubling the portfolio to at least £4 billion, and continue to deliver sustainable, long-term returns to shareholders. **Rob Abraham** | Chief Executive Officer 15 September 2026 1. Includes five assets for which the Company has exchanged contracts to acquire --- 8 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information # Our markets ## The UK grocery market: A resilient and growing market The UK grocery market has continued its strong performance, with the Institute of Grocery Distribution (“IGD”) forecasting grocery sales to reach £265 billion in 2026 and to grow to almost £300 billion by 2030. IGD: UK grocery market value 2021 to 2026 ![img-8.jpeg](img-8.jpeg) Food price inflation has eased through 2026, with grocery sales up by 3.2%¹ in the 12 months to June 2026, ahead of food price inflation at 1.7%² and CPI inflation at 2.6%³. This continued growth in grocery spending highlights the resilient nature of demand for essential food retail and supports the strong trading performance of supermarket operators. 1. Kantar: UK grocery market growth for the 52 weeks to 14 June 2026 2. ONS: CPIH food and non-alcoholic beverages inflation rate for the 12 months to June 2026 3. CPI inflation rate for the 12 months to June 2026 Grocery market growth and food inflation ![img-9.jpeg](img-9.jpeg) Ongoing geopolitical uncertainty, supply chain disruption and commodity price volatility could place renewed upward pressure on prices in the coming months. However, supermarket operators have demonstrated an ability to manage cost inflation, helping to maintain strong trading performance. This resilience is reflected in Tesco’s FY26 results, with the retailer reporting increased profitability while maintaining robust margins despite ongoing inflationary pressures, higher labour costs and increases in National Insurance contributions. This financial strength supports long-term rental growth. ## Supermarkets remain the dominant sales channel Over the last five years, supermarkets have remained the dominant sales channel in the UK grocery market. Online grocery continues to be a key pillar of the market and is the fastest-growing channel, now returning to levels seen during the pandemic at 12.6% market share in June 2026. While pure-play online operators are constrained by the cost and reach of dedicated fulfilment centres, omnichannel grocers can leverage their existing store estates to fulfil online demand efficiently. This reinforces the strategic importance of well-located supermarkets as both retail destinations and fulfilment hubs. --- 9 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information # Our markets continued Kantar: Online market share 2017 to 2026$^{1}$ ![img-10.jpeg](img-10.jpeg) Sales in large-format supermarkets continue to perform strongly, with like-for-like ("LFL") sales in large-format Tesco stores up 3.9%, while LFL convenience store sales grew by 0.3%. Online sales remain a key growth driver, with Tesco and Sainsbury's delivering online sales growth of 11.2% and 13.3%, respectively, in FY26. Omnichannel supermarkets have become critical infrastructure, serving both in-store customers and online fulfillment. For landlords, this reinforces the strategic value of large-format stores, supporting stronger trading performance, sustainable rental growth and long-term occupational demand. LFL sales growth by channel$^{2}$ ![img-11.jpeg](img-11.jpeg) 1. Kantar: online market share for the 12 weeks to June 2026 2. Tesco FY26 preliminary results. Large-format and convenience sales are like-for-like 3. Tesco and Sainsbury's FY26 Annual Results 4. Kantar: grocery market share for the 52 weeks to 14 June 2026 ## Resilient to disruption The grocery market has proven resistant to disruption. The emergence of rapid grocery delivery demonstrates the enduring value of physical stores and highlights the sector's ability to evolve with changing consumer preferences. Established operators have been able to offer rapid delivery by utilising their existing store estate, while also partnering with platforms such as Uber Eats, Deliveroo and Just Eat to broaden their reach. In FY26, Tesco and Sainsbury's rapid delivery platforms grew by 51% and 69% respectively. While several technology-led start-ups sought to disrupt the market through standalone delivery models, incumbent grocers have largely maintained their competitive advantage through the scale and reach of their store networks. The increasing adoption of artificial intelligence is also expected to enhance, rather than disrupt, the economics of physical stores. Operators are using AI to improve forecasting, optimise inventory management, automate fulfillment processes and enhance labour productivity. These technologies are expected to increase sales densities, reduce operating costs and improve store-level profitability. ## Physical stores remain at the heart of the grocery ecosystem The grocery property market is characterised by limited supply, high occupancy levels and strong tenant covenants. New store development remains constrained by planning requirements, land availability and construction costs, resulting in limited supply of new foodstores. Against this backdrop, leading grocery operators continue to prioritise investment in their store networks, seeking opportunities to optimise and expand their portfolios. The recent acquisition of former Homebase stores by Sainsbury's, M&S and Aldi highlights the continued demand for strategically located retail space and the scarcity of suitable development opportunities. This combination of constrained supply and robust occupational demand supports rental growth prospects and underpins long-term property values. ## Tesco and Sainsbury's continue to strengthen their market positions Over the past year, SUPR's key tenants, Tesco and Sainsbury's, have continued to outperform the wider grocery market, delivering volume growth ahead of their competitors with Tesco's food LFL sales and Sainsbury's grocery sales both increasing by 5.2% in FY26$^{3}$, above inflation. Both retailers reached the highest volume market share in over a decade during FY26, now standing at 28.1% and 15.6% respectively as at June 2026$^{4}$. This performance has been underpinned by sustained investment in stores, product ranges, pricing and loyalty programmes. --- 10 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information # Our markets continued Market share by operator and YoY change¹ ![img-12.jpeg](img-12.jpeg) Following the private equity takeovers of Asda and Morrisons, both operators struggled to maintain market share as increased debt costs and senior management turnover disrupted operations and hampered competitiveness. Morrisons' subsequent focus on enhancing customer engagement and streamlined operations has positioned the business for growth in a competitive grocery market. In June 2026, Morrisons reported its 14th consecutive quarter of LFL growth, with LFL sales up 2.2%². Asda has experienced the largest decline in market share, falling to 11.6% in June 2026, following disruption to its IT systems which impacted product availability. With its IT systems now stabilised, and a price-focused strategy to win back customers, trading has shown signs of improvement, with LFL sales declining by 0.8% in Q1 2026, compared with a decline of 4.2% in Q4 2025³. 1. Kantar: grocery market share for the 52 weeks to 14 June 2026, and change from June 2025 2. Morrisons trading update for the 13 weeks to 26 April 2026 3. Asda Q1 trading update for the period ended 31 March 2026 4. Carrefour FY25 annual results While Aldi and Lidl have delivered strong growth in recent years, this has been driven primarily by continued store expansion. Lidl increased its market share to 8.3% in June 2026, while Aldi's market share was unchanged year on year at 10.6%. IGD: France grocery market sales (2025 actual, 2026-2030 forecasted) ![img-13.jpeg](img-13.jpeg) ## The French grocery market The French grocery market has shown consistent and prolonged growth, with total sales forecast to reach almost €330 billion in 2030. Carrefour's performance in France continued to strengthen in 2025, with LFL sales in France increasing by 0.4%⁴ during the year. The business also achieved a key strategic milestone, delivering a 3.0% operating margin in France, supported by disciplined cost control, purchasing synergies and continued investment in pricing, product ranges and omnichannel capabilities. --- 11 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information # Our markets continued IGD: France online grocery market sales (2025 actual, 2026-2030 forecasted) ![img-14.jpeg](img-14.jpeg) As experienced in the UK, the pandemic has permanently enlarged the French online grocery market, which almost doubled in size between 2018 and 2025 to €14.4 billion. Despite this growth, online fulfilment remains heavily reliant on physical stores, with orders predominantly picked in store and most customers collecting purchases through Click & Collect ('Drive') formats. Reflecting the strategic importance of online retailing, Carrefour has made digital integration a key pillar of its 2030 strategy, targeting a 40% share of the French home delivery market and a 20% share of the Click & Collect market. ## UK investment market The UK grocery property investment market continues to benefit from strong investor demand, underpinned by the sector's defensive characteristics, long-dated inflation-linked income and exposure to mission-critical real estate. 2025 was a busy year for the sector with €1.9 billion$^{1}$ in investment volumes, ahead of the five-year average and an increase from 2024. This activity was heavily driven by a surge in sale and leaseback deals, particularly from Asda, Morrisons and Lidl. The sector continues to attract a broad range of capital. Active buyers in the market include both UK and international institutional investors, property funds and pension funds. Demand is being driven by the appeal of secure, inflation-linked cash flows, supported by strong supermarket operators whose trading performance has remained resilient throughout economic cycles. Competitive bidding for high-quality assets has contributed to stable valuations and, in selected cases, valuation growth. Recent transactions have demonstrated strong investor demand for grocery real estate, including a highly competitive bidding process for a sale and leaseback portfolio of Lidl stores. The sale of a rack-rented Sainsbury's supermarket in Hertfordshire highlights continued demand for lower-yielding grocery assets, while the acquisition of an overrented Tesco store in Berkshire by an overseas investor demonstrates the breadth of capital targeting the sector. These transactions provide positive pricing evidence, supporting valuations by demonstrating the depth of investor demand and the willingness of capital to bid strongly for well-located grocery assets. The combination of limited stock availability and deep investor demand has reinforced the attractiveness of the sector, particularly for assets with strong omnichannel credentials and long lease terms. With a highly efficient scalable platform, and lower debt costs following post year-end refinancing, the Company is well positioned to grow. Supported by a range of funding sources, including capital recycling, debt financing, expansion through joint ventures and equity issuance, SUPR has the flexibility to pursue opportunities across the grocery real estate market that are earnings accretive on a blended basis, leveraging its specialist grocery sector expertise and long-standing relationships with leading operators. This enables the Company to combine lower-yielding, prime Tesco and Sainsbury's assets with higher-yielding and longer-duration opportunities in the UK and Europe, creating a balanced portfolio that enhances earnings growth while maintaining a high-quality defensive asset base. 1. Colliers UK Grocery Real Estate Report 2026 --- 12 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information # Our business model Our business model supports our purpose of creating sustainable long-term value by owning high-quality grocery real estate that underpins national food infrastructure and serves local communities through essential retail. ## Our competitive advantage ### Grocery property specialists The only LSE-listed company dedicated to investing in grocery real estate. ### High-quality assets backed by a resilient and growing market Grocery assets are underpinned by non-discretionary consumer spending, making the portfolio resilient even in weak macro environments. ### Unrivalled sector relationships As the largest UK omnichannel supermarket landlord, we have deep expertise and strong relationships with the leading grocery operators. ### Highly efficient operating model We have one of the lowest cost ratios in the sector and a robust balance sheet, fully aligned with investor priorities. → Read more on page 2 ## How we create value ### Acquire We use our **sector specialism** to identify and **acquire** high-quality grocery assets that are **critical** to the operations of leading operators. Through disciplined capital allocation and selective capital recycling, we seek to enhance portfolio quality and capture attractive investment opportunities that support long-term shareholder returns. TEECO Sainsbury's ASDA WALTROSE & COMPANY Morris M&S ALDI → Read our case study on the Asda sale and leaseback on page 15 ### Own Our assets provide long-dated, inflation-linked, secure income through predominantly triple-net leases, alongside the potential for long-term capital growth. ### Generate Our ultimate priority is to pass on income generated from our assets to our shareholders in the form of a sustainable growing dividend and to deliver attractive total shareholder returns. → Read about our strategy for growth on page 13 ## Our outcomes ### For shareholders: 2% Minimum dividend growth per annum from FY27 7.5% Total accounting return for the year ended 30 June 2026 27.5% Total shareholder return since March 2025 internalisation 9.3% Total shareholder return for the year ended 30 June 2026 → Read more on page 30 ## Underpinned by our sustainability strategy Climate & Environment Tenant & Community Engagement Responsible Business → Read more about sustainability on page 25 --- 13 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information # Our strategy for growth ## Our vision We are establishing the leading grocery real estate business, with a clear ambition to scale the portfolio and create long-term value for shareholders. ### Our investment model We offer investors a combination of attractive, secure, growing income with the potential for long-term capital growth by acquiring grocery property. ![img-15.jpeg](img-15.jpeg) ### Our strategy We use our sector expertise and strong operator relationships to acquire high-quality, mission-critical grocery properties that form an integral part of national food infrastructure. ![img-16.jpeg](img-16.jpeg) ### Delivering in a growing and resilient sector Grocery is a growth sector, backed by non-discretionary consumer spend which has proven remarkably resilient through periods of inflationary pressures and wider economic volatility. ![img-17.jpeg](img-17.jpeg) ### Our track record since internalisation March 2025 Management internalisation April 2025 £403m strategic JV July 2025 Transfer of listing to equity shares (commercial companies) category July 2025 Debut £250m bond issuance November 2025 Acquisition of a €123m portfolio in France November 2025 Asda sale and leaseback transaction March 2026 Announced 2% minimum dividend uplift for FY27 onwards Post year end July 2026 £445m debt refinancing July 2026 £100m equity issuance to fund £222m of grocery assets --- 36 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information # Our principal risks continued ## 5. Major event ### Risk Major event/business interruption. ### Impact Unexpected events on a regional, national or global scale that result in a severe adverse disruption to the Company, which may result in loss of competitive advantage and adverse impact on financial performance. ### Mitigation The Company ensures its resilience against global events and business disruption through its financing strategy, diversified portfolio of mission-critical foodstores, and a detailed Disaster Recovery Plan. Where appropriate, relevant insurance is procured. At every reporting period end, the finance team prepare a going concern and viability assessment, which stress tests the portfolio's resilience to major impacts (large reduction in asset values and/or loss of rental income). ![img-18.jpeg](img-18.jpeg) ![img-19.jpeg](img-19.jpeg) ## 6. Increased competition ### Risk Increased competition may impact the Group's ability to source assets in the grocery sector that meet our return requirements. ### Impact The Company faces competition from other property investors. Competitors may have greater financial resources than the Company and a greater ability to borrow funds to acquire properties. The grocery property investment market continues to be considered a safe asset class for investors seeking long-term secure cash flows which is maintaining competition for quality assets. This has led to increased demand for supermarket assets without a comparable increase in supply, which could potentially increase prices and make it more difficult to deploy capital. ### Mitigation Our team has good experience in the supermarket sector and has strong relationships that help identify opportunities. As sector specialists, and a leading investor in the supermarket space, we are shown the vast majority of opportunities that meet our investment criteria. We further strengthened our ability to source and originate pipeline with senior hires (Strategy Director and Head of Investment). The Senior Leadership Team has a track record of executing transactions (c.£0.5 billion transacted in FY26). We have a resilient capital structure and a supportive lender/investor base, evidenced by our bond issuance in July 2025, which was 3.0x oversubscribed, and our £100 million equity issuance in July 2026. We have a competitive cost of capital and are able to deploy at attractive rates of return. At the time of writing, we have a pipeline in excess of £500 million. ![img-20.jpeg](img-20.jpeg) ![img-21.jpeg](img-21.jpeg) ## 7. Key person risk ### Risk Key person risk. ### Impact The Company relies heavily on a relatively small team of highly motivated individuals whose skills and experience are crucial to the success of the Company. ### Mitigation We offer competitive remuneration packages, with all staff members participating in the Long-Term Incentive Plan ("LTIP"), which for senior members of the team is subject to performance conditions. This incentivises long-term performance and helps to create an ownership culture within the Company. We conduct semi-annual staff appraisals, which provide a forum to discuss targets, progress, prospects and training needs. During the year, the Remuneration Committee undertook a review of the base salary levels of the Executive Directors and consulted with major shareholders and the main proxies in respect of phased increases towards FTSE 250 Real Estate median levels. The majority of shareholders who responded were supportive of the proposed increases. Furthermore, the Nomination Committee will continue to consider contingency plans for unforeseen absences of Executive Directors as well as other senior management. During the year, to strengthen the expertise and leadership capabilities of the Senior Management Team, the Company made two senior hires (Head of Investment and Strategy Director). ![img-22.jpeg](img-22.jpeg) ![img-23.jpeg](img-23.jpeg) ### Key to risk change in the year Increase — No change Decrease --- 37 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information # Our principal risks continued ## 8. Cyber security and disaster recovery ### Risk Cyber security threat and disaster recovery. ### Impact Cyber threats may give rise to significant financial losses and/or disruption to business processes and corporate systems. ### Mitigation The Company's IT and Cyber Risk Policy is designed to reduce the risk of a cyber attack against the Company. All employees are bound by the terms of this policy and receive appropriate training on a regularised basis. As part of the ongoing commitment to improving the security of the Company's data, we have achieved the Cyber Essentials Plus certification (a UK Government-backed certification scheme). The Company has an outsourced IT consultant, who is responsible for conducting periodic cyber security assessments and also managing the response to identified risk. In addition to the above, the Company has implemented a Disaster Recovery Plan, which has been designed to set out protocols in the event of an emergency. ![img-24.jpeg](img-24.jpeg) ![img-25.jpeg](img-25.jpeg) ### Key to risk change in the year Increase — No change Decrease ## 9. Sustainability-related regulation ### Risk Changes in sustainability-related regulation could lead to non-compliant assets becoming unlettable. ### Impact Evolving energy-efficiency and sustainability regulation could restrict the letting of non-compliant assets and adversely affect rental income, operating costs and property valuations. In England and Wales, proposed Minimum Energy Efficiency Standards ("MEES") changes are expected to require commercial buildings over 1,000 m² to meet minimum EPC B from 2031, where cost-effective. Non-compliant properties could face foregone rental income, financial penalties, increased capital expenditure and reduced valuations, until remedial works are undertaken. Similar risks exist within the French portfolio, where failure to comply with the APER Law (outdoor car park solar canopy requirements) and the Tertiary Decree (energy reduction obligations) could result in financial penalties, increased compliance costs and reputational damage. ### Mitigation The ESG Committee is informed about regulatory changes by the Company's Sustainability Consultant and asset management team through quarterly meetings and ESG update papers. In June 2025, the Company announced its Climate Transition Plan, setting out our pathway to net zero. As part of this plan, we will monitor and track the energy performance of our buildings and maintain an EPC schedule. Proposed MEES changes will require all large commercial properties to reach EPC B by 2031. As at 30 June 2026, 45% of the portfolio (by value) is already compliant, with an EPC A-B rating. We will continue to work closely with our tenants to support their energy efficiency investments in our stores to ensure full compliance. ![img-26.jpeg](img-26.jpeg) ![img-27.jpeg](img-27.jpeg) ## 10. Compliance with UK REIT regime ### Risk We operate as a UK REIT and have a tax-efficient corporate structure, with advantageous consequences for UK shareholders. ### Impact If the Company fails to remain a REIT for UK tax purposes, our profits and gains will be subject to UK corporation tax. ### Mitigation The Board takes direct responsibility for ensuring we adhere to the UK REIT regime by monitoring the REIT compliance. The Board has also engaged third-party tax advisers to help monitor REIT compliance requirements and the CFO/Head of Finance also monitors compliance by the Company with the REIT regime. ![img-28.jpeg](img-28.jpeg) ![img-29.jpeg](img-29.jpeg) --- 38 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information # Going concern and viability statement ## Going concern and viability statement The Directors have considered the appropriateness of adopting the going concern basis in preparing the Group's and Company's financial statements for the year ended 30 June 2026. In assessing the going concern basis of accounting the Directors have had regard to the guidance issued by the Financial Reporting Council. ## Liquidity At 30 June 2026, the Group had £37.4 million in cash and undrawn committed facilities totalling £82.6 million with £2.0 million of capital commitments and no contingent liabilities. After the year end, the Group refinanced its £445 million unsecured facilities, linked to SONIA/EURIBOR, which were expected to expire within the next two years and exercised £130.0 million of the available £250.0 million accordion. Following this, the Group currently has £207.0 million in undrawn committed facilities. The Directors are of the belief that the Group continues to be well funded during the going concern period with no concerns over its liquidity. ## Refinancing events At the date of signing the financial statements, the Group has no refinancing events until July 2029. The Group currently has £207.0 million debt capacity from its existing facilities. ## Covenants The Group's debt facilities include covenants in respect of LTV, interest cover, unencumbered assets and priority debt. The Directors have evaluated a number of scenarios as part of the Group's going concern assessment and considered the impact of these scenarios on the Group's continued compliance with debt covenants. The key assumptions that have been sensitised within these scenarios are falls in rental income and increases in administrative cost inflation. As at the date of issuance of this Annual Report, 100% of contractual rent for the period has been collected. The Group benefits from a secure income stream from its property assets that are let to tenants with excellent covenant strength under long leases that are subject to predominantly upward-only rent reviews. The list of scenarios is below and are all on top of the base case model which includes prudent assumptions on valuations and cost inflation. The Group is 98% fixed or hedged (including post-year-end refinancings). No sensitivity for movements in interest rates has been modelled for the hedged debt during the going concern assessment period. | Scenario | Rental income | Costs | | --- | --- | --- | | **Base case scenario (Scenario 1)** | 100% contractual rent received when due and rent reviews based on forward-looking inflation curve, capped at the contractual rate of the individual leases. | In line with Company FY27 budget and increased by inflation thereafter. | | **Scenario 2** | Rental income to fall by 20%. | Costs expected to remain the same as the base case. | | **Scenario 3** | Rental income expected to remain the same as the base case. | 10% increases on base case costs to all administrative expenses. | The Group continues to maintain covenant compliance throughout the going concern assessment period under each of the scenarios modelled. The lowest amount of ICR headroom experienced in the worst-case stress scenarios was 39.6%. Property values would have to fall by more than 26.5% before LTV covenants are breached during the going concern period. Having reviewed and considered the scenarios, the Directors consider that the Group has adequate resources in place for at least 12 months from the date of these results and have therefore adopted the going concern basis of accounting in preparing the Annual Report. ## Assessment of viability The period over which the Directors consider it feasible and appropriate to report on the Group's viability is the five-year period to 30 June 2031. This period has been selected because it is the period that is used for the Group's medium-term business plans and individual asset performance forecasts. The assumptions underpinning these forecast cash flows and covenant compliance forecasts were sensitised to explore the resilience of the Group to the potential impact of the Group's significant risks, or a combination of those risks. The principal risks on pages 34 to 37 summarise those matters that could prevent the Group from delivering on its strategy. A number of these principal risks, because of their nature or potential impact, could also threaten the Group's ability to continue in business in its current form if they were to occur. The Directors paid particular attention to the risk of a deterioration in economic outlook which could impact property fundamentals, including investor and occupier demand which would have a negative impact on valuations, and give rise to a reduction in the availability of finance. The sensitivities performed were designed to be severe but plausible, and to take full account of the availability of mitigating actions that could be taken to avoid or reduce the impact or occurrence of the underlying risks. --- 39 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information # Going concern and viability statement continued ## Viability statement The Board has assessed the prospects of the Group over the five years from the balance sheet date to 30 June 2031, which is the period covered by the Group's medium-term financial projections. The Board considers the resilience of projected liquidity, as well as compliance with debt covenants and UK REIT rules, under a range of inflation and property valuation assumptions. The principal risks and the key assumptions that were relevant to this assessment are as follows: | Risk | Assumption | | --- | --- | | **Borrowing risk** | The Group continues to comply with all relevant loan covenants. The Group is able to refinance all debt falling due within the viability assessment period on acceptable terms. | | **Interest rate risk** | The increase in variable interest rates is managed by reduction of variable debt from cash inflows and utilising interest rate derivatives to limit the exposure to variable debt. | | **Liquidity risk** | The Group continues to generate sufficient cash to cover its costs while retaining the ability to make distributions. | | **Tenant risk** | Tenants (or guarantors where relevant) comply with their rental obligations over the term of their leases and no key tenant suffers an insolvency event over the term of the review. | Based on the work performed, the Board has a reasonable expectation that the Group will be able to continue in business over the five-year period of its assessment. ## Other disclosures Disclosures in relation to the Company's business model and strategy have been included within the Strategic Report on pages 12 and 13. Disclosures in relation to the main industry trends and factors that are likely to affect the future performance and position of the business have been included within Our markets on pages 8 to 11. Disclosures in relation to environmental and social issues have been included within the TCFD Report on pages 149 to 160. Employee diversity disclosures have not been included as the Directors do not consider these to be relevant to the Company. ## Key performance indicators ("KPIs") The KPIs and EPRA performance measures used by the Group in assessing its strategic progress have been included on pages 14 and 146. ![img-30.jpeg](img-30.jpeg) --- 40 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information # Governance Report ## What's in this section? Chair's letter on corporate governance...41 The Board of Directors...43 Senior Management Team...45 Leadership and purpose...47 Division of responsibilities...51 Composition, succession and evaluation...54 Audit, risk management and internal control...55 Audit and Risk Committee Report...56 Nomination Committee Report...62 ESG Committee Report...67 Remuneration Committee Report...69 Directors' Remuneration Policy...75 Annual Report on Directors' Remuneration...79 Directors' Report...85 Directors' responsibilities statement...88 Willowbrook Shopping Centre, Bristol --- 41 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information # Chair's letter on corporate governance ## Dear shareholder, I am pleased to introduce this year's Corporate Governance Report for the financial year ended 30 June 2026. This has been a year of significant progress for the Company, as we have continued to embed the changes arising from the internalisation, delivered on our strategic objectives and strengthened our governance framework. This report provides more detail on how our governance structures have evolved and how the Board and its Committees have worked on behalf of shareholders and stakeholders to achieve SUPR's strategic goals. ## Board priorities This year marked the first full financial year following the completion of the internalisation. The Board's focus has been on ensuring that the Company's new operating model is fully embedded and that management and employees are aligned with shareholder interests. We have overseen continued value-accretive acquisitions, including the acquisition of a Tesco omnichannel supermarket in Ashford, a portfolio of 20 Carrefour supermarkets in France and 10 Asda supermarkets, alongside the transfer of assets into the joint venture with funds managed by Blue Owl Capital at a premium to book value. In July 2025, the Company transferred its listing category from the closed-ended investment funds category to the equity shares (commercial companies) category of the Official List. This was a significant milestone which better reflects the Company's internalised structure as a real estate company. During the year, we also issued our debut £250 million Sterling-denominated senior unsecured bond, diversifying our sources of capital and extending our debt maturity profile. ## Board changes and succession planning In November 2025, Jon Austen stepped down from the Board after eight years of valued service, including as Chair of the Audit and Risk Committee. Roger Blundell succeeded Jon as Audit and Risk Committee Chair, bringing extensive financial and real estate expertise to the role. Succession planning has been a key focus for the Nomination Committee. As Vince Prior and I have each served on the Board for just over nine years, the Board has developed a phased transition plan to ensure continuity. Vince Prior will retire following the 2026 AGM and, following consultation with major shareholders, I will remain as Chair for up to a further two years, with the intention to step down from the Board no later than the Company's 2028 AGM, to provide stability during this period of transition. This would be subject to my annual re-election at both the 2026 AGM and 2027 AGM. The Board will continue to execute its succession plan including the recruitment of a Board Director in light of Vince Prior stepping down in November 2025 and my intention to step down by the 2028 AGM. Recruitment will be considered in order to maintain an appropriate balance of skills, knowledge and experience of the Board as a whole for the Company's future strategy. We have also strengthened the Senior Management Team with the appointments of Jamie Cowen as Strategy Director and Justin Upton as Head of Investment. Their biographical details can be found on page 46. Following the Board changes arising from the internalisation, the Board did not meet the Listing Rule requirement for 40% female representation during the financial year. However, following Vince Prior's departure in November 2026, female representation will increase to 43%, returning the Board to full compliance with the Listing Rule diversity targets. ## UK Code of Corporate Governance Following our change of listing category, we now report against the UK Corporate Governance Code 2024 ("UK Code") issued by the Financial Reporting Council ("FRC") and available at http://www.frc.org.uk. This section provides details of how the Company has applied the principles and complied with the provisions of the UK Code. During the year, the Audit and Risk Committee undertook preparatory steps for the declaration on the effectiveness of material controls required under Provision 29 of the UK Code for the financial year ending 30 June 2027. We also enhanced our cyber security and IT controls following an external audit, and successfully implemented new property management accounting software to strengthen our internal control environment. ## Culture and stakeholder engagement The Board recognises that the way in which we conduct our business is just as important as what we do. During the year, we conducted an Employee Engagement Survey which was fed back to the Board and, in FY27, we will be enhancing workforce engagement by introducing sessions where Non-Executive Directors meet with groups of employees to gain insight into ideas, opinions and experiences across the team. We continue to monitor and strengthen the Company's culture and ensure alignment with our purpose, strategy and values. Shareholder engagement continues to be led by the Executive Directors, and we are proud of the comprehensive programme they maintain. Throughout the year, myself, Sapna Shah as Senior Independent Director and members of the Remuneration Committee have engaged with major shareholders on matters including executive remuneration and extension of my tenure. The feedback we received was invaluable and we intend to continue to actively engage with shareholders and welcome all feedback received. --- 67 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information # Environmental, Social and Governance (“ESG”) Committee Report Frances Davies | ESG Committee Chair ![img-31.jpeg](img-31.jpeg) Dear shareholder, I am pleased to present the ESG Committee Report for the year ended 30 June 2026. Composition At 30 June 2026, the Committee comprised three independent Non-Executive Directors of the Company. Committee members Frances Davies – Chair of the Committee Nick Hewson Cathryn Vanderspar All the Committee members served for the full year, unless otherwise stated. Meetings During the year, the ESG Committee held four meetings. The Company Secretary and I ensure that the meetings are of sufficient length to allow the Committee to consider all important matters and the Committee is satisfied that it receives full information in a timely manner to allow it to fulfil its obligations. The other Directors, members of the Senior Management Team and advisers were invited to attend the Committee meetings. Responsibilities The ESG Committee’s terms of reference are available on the Company’s website. The Committee serves as an independent and objective party to monitor the integrity and quality of the Company’s ESG strategy, and to ensure that the Company’s ESG strategy is integrated into its business plan, values and objectives. It also fosters a culture of responsibility and transparency, and it reviews and approves the Company’s annual reporting in relation to ESG. The Committee’s key responsibilities include: - overseeing the establishment and implementation of ESG-related policies and codes of practice; - setting KPIs related to ESG matters and overseeing performance against those KPIs; - identifying the required resourcing and funding of ESG-related activity; - overseeing climate-related risks and opportunities and monitoring progress against the Company’s GHG emissions reduction targets and other targets and goals for addressing climate-related issues; - overseeing the Company’s engagement with its broader stakeholder community; and - ensuring that the Company monitors and reviews current and emerging ESG trends, relevant regulatory requirements and international standards and analysing how those are likely to impact the Company. --- 68 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information # Environmental, Social and Governance (“ESG”) Committee Report continued ## Responsibilities continued The Committee focuses on overseeing the three pillars of the Company’s ESG strategy: **Climate & Environment** – The Company’s impact on the natural environment and its response to the challenge of climate change, including: greenhouse gas emissions; energy consumption; generation and use of renewable energy; biodiversity and habitat; impact on water resources and deforestation; pollution; efficient use of resources; the reduction and management of waste; and the environmental impact of the Company’s supply chain. **Tenant & Community Engagement** – The Company’s interaction with stakeholders including its employees, tenants and the communities in which it operates and the role of the Company in society, including: engaging with tenants on sustainability performance, stakeholder policies (e.g. stakeholder engagement, diversity, non-discrimination and equality of treatment, health, safety and wellbeing); ethical/responsible sourcing; labour standards of the supply chain (including child labour and modern slavery); and engagement with and contribution to the broader community through social projects, volunteering and charitable donations. **Responsible Business** – The ethical conduct of the Company’s business including its corporate governance framework, business ethics, EGS training, Board policies and codes of conduct (e.g. related to donations and political lobbying, bribery and corruption), and the transparency of non-financial reporting. ![img-32.jpeg](img-32.jpeg) ## Activities During the year there were four meetings at which we discussed – and where relevant recommended to the Board for approval – a variety of matters. Grant Thornton presented their ESG assurance findings and we approved our refreshed ESG policy framework following the CEN-ESG review. We also oversaw the Company’s charitable donations and volunteering activities, including our partnership with Regeneration Brainery to support social mobility. The Committee received regular sustainability updates, monitoring progress on ESG data collection and tenant engagement. We approved the Company’s membership of the UN Global Compact and oversaw the transition to the Munich Re climate risk tool for enhanced portfolio analysis. The Committee has responsibility for reviewing ESG-related reports and disclosures. During the year we recommended the Company’s standalone Sustainability Report to the Board for approval, which achieved the EPRA sBPR Gold Award and ‘Prime’ rating. Further details of the Company’s progress against its commitments can be found in the TCFD Report on pages 149 to 160 and the Company’s Sustainability Report. ## Committee effectiveness Details of the performance evaluation conducted during the year can be found on pages 65 and 66. Signed on behalf of the ESG Committee by **Frances Davies** | ESG Committee Chair 15 September 2026 --- 69 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information # Remuneration Committee Report Cathryn Vanderspar | Remuneration Committee Chair ![img-33.jpeg](img-33.jpeg) Dear Shareholder, I am pleased to introduce the Directors' Remuneration Report for the year ended 30 June 2026. This report has been prepared by the Remuneration Committee and approved by the Board and is divided into three parts: - this Annual Statement of the Remuneration Committee Chair for the year ended 30 June 2026, which sets out details of the Committee, its activities, remuneration paid to Directors for the year ended 30 June 2026 and how the Policy will be operated for the year ending 30 June 2027; - a summary of the Directors' Remuneration Policy which was approved by shareholders at the 2025 General Meeting on 20 March 2025; and - the Annual Report on Remuneration, which provides details on remuneration paid during the year ended 30 June 2026. Preparation of this report This report, prepared by the Remuneration Committee on behalf of the Board, takes full account of the prevailing UK Corporate Governance Code and the latest guidance from the main shareholder representative bodies, and has been prepared in accordance with the provisions of the Companies Act 2006 (the "Act"), the UK Listing Rules and the Large and Medium-sized Companies and Groups (Accounts and Reports) (Amendment) Regulations 2013 ("Regulations"). The Act requires the auditor to report to the Company's shareholders on the audited information within this report and to state whether in their opinion those parts of the report have been prepared in accordance with the Act. Those parts of the report which have been subject to audit are clearly marked. Composition The Committee is comprised of independent Non-Executive Directors as follows: Committee members Cathryn Vanderspar – Committee Chair Jon Austen (to 24 November 2025) Roger Blundell Frances Davies The other Directors and our remuneration consultants (FIT Remuneration Consultants LLP) were invited to attend the Committee meetings as required and where appropriate. Meetings During the year, the Remuneration Committee held four scheduled meetings and one ad hoc meeting. The Company Secretary and I ensure that the meetings are of sufficient length to allow the Committee to consider all important matters and the Committee is satisfied that it receives full information in a timely manner to allow it to fulfil its obligations. --- 70 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information # Remuneration Committee Report continued ## Responsibilities The Remuneration Committee's terms of reference are available on the Company's website. The Committee's main responsibilities include: - designing the framework and policy for Executive Directors' remuneration and determining remuneration packages for the Executive Directors, Chair and Senior Management Team, including the Company Secretary (other than where the role is outsourced), to promote the achievement of the Group's strategy and long-term sustainable success. When setting executive remuneration, the Committee takes into account the link between Executive Director and senior manager remuneration and that provided to the wider workforce; - establishing remuneration schemes that promote long-term shareholding by Executive Directors and that support alignment with shareholders' interests, both in post and post cessation; - approving the design and operation of the Company's short-term and long-term incentive arrangements. This includes agreeing the targets that are applied to awards made to Executive Directors and the Senior Management Team; - oversight of the administration of share plans as required; and - reviewing workforce remuneration and related policies. ## Activities The key areas considered by the Remuneration Committee in respect of the year ended 30 June 2026 were as follows: - reviewed base salary levels of the Executive Directors and consulted with major shareholders and the main proxies in respect of phased increases towards FTSE 250 Real Estate median levels. Further details are set out below; - agreed the maximum award levels and performance metrics, weightings and targets for the annual bonus for year ended 30 June 2026; and - agreed the approach for long-term incentive awards to be granted in FY27. ## Implementation of the Policy for the year ended 30 June 2026 - The Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO") received base salaries of £375,000 and £275,000 respectively (as set at appointment to the Board) and pension provision set at 8% of salary in line with the wider workforce provision. - Annual bonus for the year ended 30 June 2026 was capped at 150% of salary. Following a review of performance against the financial targets (based on EPRA earnings, total property return and EPRA cost ratio) and non-financial targets (which included personal, strategic and ESG-based objectives), the Committee determined a bonus of 72% of maximum for both the CEO and CFO. 50% of the bonus awards will be deferred into shares for two years in line with the Policy. - Following the grant of the first LTIP awards to the CEO and CFO in June 2025, no LTIP was granted in the year ended 30 June 2026. The next LTIP is intended to be granted to Executive Directors in the year ending 30 June 2027 following the publication of results for the year ended 30 June 2026 as detailed below. - The Chair received an annual fee of £150,000 and the Non-Executive Directors received a base fee of £60,000 per annum, with an additional £10,000 payable for the role of Senior Independent Director and an additional £10,000 payable for chairing a Board committee. ## Use of discretion and malus and clawback provisions The Committee retains the right to exercise discretion to override formulaic outcomes and ensure that the level of bonus and/or share award payable is appropriate. No such discretion in relation to Executive Directors was used in respect of the year ended 30 June 2026. In addition, there was no exercise of malus/clawback under the Policy during the year under review. --- 71 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information # Remuneration Committee Report continued ## Implementation of the Policy for the year ending 30 June 2027 for Executive Directors Details of how the Remuneration Committee intends to implement the Policy for the Executive Directors in respect of the year ending 30 June 2027 are as follows: ### Base salary increases - Rob Abraham and Mike Perkins were appointed to the Board as CEO and CFO on 25 March 2025 on base salaries of £375,000 and £275,000 respectively. While incentive potential was aligned to FTSE 250 Real Estate practice (i.e. an annual bonus potential of 150% of salary and an annual LTIP award of 200% of salary), the Committee made a conscious decision to set salaries that were initially in the lower quartile of the Real Estate sector with a view to moving them towards market over time, subject to satisfactory Company and individual performance. The Committee's decision was very much supported by the CEO and CFO notwithstanding that neither Rob nor Mike benefited from any of the termination payments made to Atrato Group upon the internalisation and termination of the investment management agreement in 2025. - Now that we are more than 12 months on from the internalisation and following a review of FTSE 250 Real Estate sector practice and the FTSE 250 more generally and a successful shareholder consultation exercise (as detailed below), the Remuneration Committee has commenced phasing the salaries towards market levels as follows: | | CEO | CFO | | --- | --- | --- | | To 30 June 2026 | £375,000 | £275,000 | | From 1 July 2026 | £485,000 (+£110,000) (+29%) | £355,000 (+£80,000) (+29%) | | From 1 July 2027 | Up to £580,000 (+£95,000) (+20%) | Up to £425,000 (+£70,000) (+20%) | - In line with best practice, the increases for each Executive Director will be awarded in two phases. While the salary increases: - from 1 July 2026 were significantly above the workforce average increases, the one-off increases are being phased and the salary increases from 1 July 2027 will be subject to satisfactory Company and individual performance during the FY27 financial year (i.e. the second increases are not guaranteed); and - impact both fixed and variable remuneration costs for the Executive Directors, SUPR remains committed to being one of the lowest cost companies in the sector and we continue to target a below 9% EPRA cost ratio. - Other than for a material role change, subsequent salary increases from 1 July 2028 onwards are expected to be in line with general workforce increases. - While the Committee uses benchmark data with caution, it notes that the proposed salaries will more closely align the CEO and CFO to both SUPR's listed sector peers and the lower quartile of the FTSE 250 (where the market capitalisation is closely comparable to the Company's). That said, the proposed maximum 2027 salaries set out above are below the current medians of our FTSE 250 real estate peers and this gap will increase when average Executive Director salary inflation (expected to be 2% to 3% over the next two years) is factored in. Details of the shareholder consultation exercise conducted and the feedback received are set out below. ![img-34.jpeg](img-34.jpeg) ![img-35.jpeg](img-35.jpeg) --- 72 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information # Remuneration Committee Report continued ## Implementation of the Policy for the year ending 30 June 2027 for Executive Directors continued ### Operation of the current Remuneration Policy for the remaining elements of the packages Other than the proposed salary phasing set out above, no changes are proposed in respect of the Directors' Remuneration Policy and how it will be implemented in the year ending 30 June 2027 for the CEO and CFO. The key elements are as follows: - pension provision, set at 8% of salary in line with the wider workforce provision, will remain unchanged; - annual bonus will continue to be capped at 150% of salary with performance measured against a combination of financial targets (EPRA earnings, total property return and EPRA cost ratio) and non-financial personal, strategic and ESG-based objectives. However, rather than a 60%:40% weighting in respect of financial to non-financial targets (intended to be a one-off weighting to focus management on the delivery of both the financial targets and the post-internalisation strategy rollout), the weighting on financial targets will be increased from 60% to 70% of bonus potential. This change to 70% financial and 30% non-financial targets is intended to create greater alignment between management and shareholders following the successful delivery of the internalisation and the salary increases detailed above. The current approach to annual bonus deferral (i.e. 50% of any bonus awarded is deferred into shares for two years) will remain unchanged; and - LTIP awards will continue to be set at a maximum of 200% of salary with the next award (the second post internalisation) intended to be granted following the announcement of results for the year ended 30 June 2026. As per the June 2025 awards, the 2026 awards will be subject to performance targets based on: (i) relative total shareholder return ("TSR") (50% of the award); (ii) absolute total accounting return ("TAR") (25% of the award); and (iii) EPRA earnings per share ("EPS") (25% of the award). Details of the performance targets are shown in the table below: | Performance target | % vesting of relevant part of awards | TSR v FTSE 350 Real Estate (excluding agencies) (50% of award) | TAR (25% of award) | EPRA EPS for FY29 (25% of award) | | --- | --- | --- | --- | --- | | Below threshold | – | Below median | Less than 5% p.a. | Less than 6.37p | | Threshold | 25 | Median | 5% p.a. | 6.37p | | Stretch | 100 | Upper quartile | 10% p.a. | 7.05p | | Performance measurement period | | Measured from 1 July 2026 to the publication of FY29 results | Measured against targets for FY27, FY28 and FY29 | Measured against targets for FY29 | Awards will vest on a straight-line basis for performance between the threshold and stretch targets and that part of the awards lapses if the threshold target is not achieved. In addition to the performance metrics and targets outlined above, the Committee will retain discretion to adjust any formulaic outcome for the 2026 LTIP awards if it considers it necessary to take account of its broader assessment of Company or executive performance and the stakeholder experience more generally over the vesting period. - Shareholder protections (i.e. the two-year post-vesting holding period on LTIPs, the malus and clawback provisions operated in the annual bonus and LTIP and the shareholding guidelines), all of which were introduced last year as part of the internalisation, remain unchanged as they are considered to be well aligned to best practice. --- 73 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report**Governance Report**^{}[] Financials Additional Information # Remuneration Committee Report continued ## Shareholder engagement The Company is committed to engagement with shareholders and is committed to seeking major shareholders' views in advance of making significant changes to the Directors' Remuneration Policy and how it is implemented. In this regard and as noted above, major shareholders were consulted towards the end of FY26 in respect of the base salary phasing for the CEO and CFO, and the Remuneration Committee was grateful for the support the proposed approach received. A summary of the main feedback received, and the Committee's responses, to the feedback is as follows: | **Rationale for the proposed salary increases** | The majority of shareholders who responded were supportive of the proposed salary increases, recognising the progress made by the Company since internalisation and the role played by the CEO and CFO in delivering the Company's strategy going forward. While the increases were noted as being significant, there was a general acceptance that the proposed increases had been carefully positioned and there appears to be strong levels of shareholder support. **Committee response:** The Committee is grateful for the positive responses in this regard and appreciates the recognition of the management team's contribution and the importance of their role in delivering the strategy going forward. | | --- | --- | | **Phasing of salary increases** | Shareholders appreciated the phasing of the salaries, particularly noting that the salary increases: • from 1 July 2027 are the maximum potential increases, with any 2027 increase subject to satisfactory Company and individual performance during FY27 (i.e. the second increases are not guaranteed); and • from 1 July 2028 onwards are expected to be in line with general workforce increases (other than for a material role change). There did not appear to be a significant desire from shareholders to extend the phasing period. **Committee response:** The Committee is grateful for the positive responses in respect of the timing of the proposed phasing. | | **Market benchmarking** | Several shareholders sought further information regarding the market benchmarking undertaken by the Committee, how the proposed salaries compare with sector peers and the wider FTSE 250 and/or the appropriateness of wider sector comparators. **Committee response:** The Committee shared the underlying data with a number of respondents during the consultation to demonstrate the proposed salary market positioning. While noting that any benchmarking exercise is subjective in nature, and the sector peer group is somewhat imperfect, the Committee believes that the salary positioning is appropriate (i.e. below the current median of our FTSE 250 real estate peers, noting that this gap will increase when average Executive Director salary inflation (expected to be between 2% to 3%) is factored in and in the lower quartile of the FTSE 250). | | **Impact of the salary increases on total remuneration** | A small number of shareholders sought to understand whether there was any intention to make changes to the variable elements (i.e. annual bonus and LTIP potential) within the next few years to obtain a better understanding of: (i) how total remuneration will evolve in the near future against the market; and/or (ii) the likely impact on future costs. **Committee response:** The Committee confirmed that there is currently no intention to change annual bonus potential (150% of salary) and maximum LTIP awards (200% of salary) for the CEO and CFO at the next Directors' Remuneration Policy review, as both are very much aligned to the FTSE 250 sector and we do not expect sector practice to change over the next few years. | | **Directors' Remuneration Report disclosures** | While the view of the majority of shareholders was that the shareholder consultation materials were comprehensive and the rationale for the increases compelling, a number of shareholders/proxies stated that the Directors' Remuneration Report should provide a holistic and detailed rationale to ensure that shareholders and the main representative bodies have all of the detail to hand in respect of voting at the 2026 AGM. **Committee response:** The Committee is grateful for the feedback in this regard. | The Committee will continue to monitor developments in the expectations of institutional investors and consider good practice guidelines from institutional shareholders and shareholder bodies. In addition, the Chair of the Remuneration Committee will attend the 2026 AGM to hear the views of shareholders on remuneration and answer any questions. --- 74 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information # Remuneration Committee Report continued ## Implementation of the Policy for the year ending 30 June 2027 for Non-Executive Directors In respect of how the Policy will be implemented for the Non-Executive Directors in the year ending 30 June 2027: - the Committee reviewed the annual fee for the Chair and awarded a 2.8% increase, broadly in line with CPI inflation, from £150,000 to £154,000 per annum from 1 July 2026; and - the Board, excluding the Non-Executive Directors, reviewed Non-Executive Director base fees and awarded a 2.5% increase, broadly in line with CPI inflation, from 1 July 2026. As such, the base fee increased from £60,000 to £61,500 per annum and the additional amounts payable for the role of Senior Independent Director and for chairing a Board committee were increased from £10,000 to £10,500 per annum. ## Employee remuneration considerations In setting the Policy, the pay and conditions of employees of the Company other than Directors are taken into account. The Remuneration Committee is provided with data on the remuneration structure for all staff and uses this information to ensure consistency of approach throughout the Company. The Company has a small number of employees and applies the same broad policy in relation to incentive compensation throughout the organisation, albeit Restricted Share Awards rather than LTIPs are granted for less senior employees. Although the Remuneration Committee takes into account the pay and conditions of other employees, the Company did not consult with employees when drawing up the Policy. ## 2026 Annual General Meeting resolution Noting the approval of the Policy at the March 2025 General Meeting, a single advisory resolution in respect of the Directors' Remuneration Report (other than the part containing the Directors' Remuneration Policy) for the year ended 30 June 2026 will be presented at the 2026 AGM. I trust that shareholders will support the Committee and vote in favour of this resolution. Signed on behalf of the Remuneration Committee by **Cathryn Vanderspar** | Remuneration Committee Chair 15 September 2026 ![img-36.jpeg](img-36.jpeg) --- 75 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information # Directors' Remuneration Policy Cathryn Vanderspar | Remuneration Committee Chair ![img-37.jpeg](img-37.jpeg) This section of the Directors' Remuneration Report contains a summary of the Directors' Remuneration Policy (the "Policy") which was approved by shareholders at the 20 March 2025 General Meeting. The full Policy can be found in the shareholder circular published in respect of the internalisation dated 4 March 2025 (https://supermarketincomereit.com/investor-centre/general-meeting/). ## Policy scope The Policy applies to the Chair, Executive Directors and Non-Executive Directors. ## Overview of Policy The Policy, which has been developed following a comprehensive remuneration review, has the following objectives: - to offer suitable packages to attract, retain and motivate people with the skills and attributes needed to deliver the Company's business goals while recognising the unique nature of the organisation and ensuring alignment with shareholders; - to drive behaviours that support the Company strategy and business objectives; and - to link incentive plans to Company and individual performance to encourage high performance from staff both at an individual and at a team level. These Policy objectives will be achieved by ensuring that any remuneration provided is reflective of applicable market conditions, statutory obligations and the level of accountability (responsibility, objectives, goals) assigned to the recipient, in order to deliver outstanding performance, while providing organisational flexibility and operational efficiency. --- 76 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report**Governance Report**^{}[] Financials Additional Information # Directors' Remuneration Policy continued ## Remuneration Policy table | Element of remuneration | Purpose and link to strategy | Operation | Maximum | Performance conditions and assessment | | --- | --- | --- | --- | --- | | **Base salary** | To provide competitive fixed remuneration that will attract and retain key employees and reflect their experience and position in the Company. | Base salary is normally reviewed annually. When considering any increases to base salaries in the normal course (as opposed to a change in role or responsibility), the Remuneration Committee will take into consideration: - level of skill, experience, scope of responsibilities and performance; - business performance, economic climate and market conditions; - pay and employment conditions of employees throughout the Group, including increases provided to staff; - inflation; and - increases provided to Executive Directors in comparable companies (although such data would be used with caution). | Salaries are typically set after considering the salary levels in companies of a similar size and complexity in the UK real estate sector and FTSE All-Share. Base salary increases will normally be no higher than the average level of increases awarded (in percentage terms) to the wider workforce. Higher increases may apply if there is a change in role, level of responsibility or experience or if the individual is new to the role. There is no maximum salary cap in place. | None | | **Pension** | To provide competitive levels of retirement benefit. | Contribution made into a pension plan and/or a cash supplement of equivalent value paid in lieu of pension contribution. | 8% of annual salary plus adjustments in line with any increases provided to the wider workforce. | None | | **Other benefits** | To provide competitive levels of employment benefits. | Executive Directors may receive a benefits package which includes: - health insurance; - death in service benefits; - company car allowance; and - other benefits as provided from time to time. Benefits are reviewed periodically to ensure that they remain market competitive. | Maximum opportunity is the total cost of providing the benefits. There is no monetary cap on benefits. | None | | **Annual bonus** | The annual bonus aligns reward to key Group strategic objectives and drives short-term performance. | Executive Directors participate in an annual performance-related bonus scheme. A minimum of 50% of any annual bonus will normally be deferred into shares for two years where shareholding guidelines have not been met. Where shareholding guidelines are met, no deferral will normally operate. Dividend equivalents may be payable on deferred bonus awards. The payment may assume dividend reinvestment. The annual bonus plan rules contain clawback and malus provisions. | 150% of annual salary. | Normally assessed annually and determined by the Remuneration Committee based on financial, strategic and/or personal performance against the Group's business plan for each financial year. Amounts ranging from nil up to 25% of any annual bonus may be available at threshold performance. | --- 80 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report**Governance Report**^{}[] Financials^{}[] Additional Information # Annual Report on Directors’ Remuneration continued ## Annual bonus for the year ended 30 June 2026 (audited) The tables below set out the financial measures and strategic objectives and their respective outcomes under the annual bonus plan for the year ended 30 June 2026. These measures apply to both Executive Directors equally and provide each Director with a percentage payout of their maximum bonus, capped at 150% of basic salary. The payouts are set out in the third table below. | Metric | Weighting | Threshold target | Maximum target | Outcome | % of maximum bonus payable | | --- | --- | --- | --- | --- | --- | | Adjusted earnings targets^{1} | 20% | £68.0m | £75.2m | £71.3m | 59% | | Total property return targets | 20% | 5.3% | 5.8% | 6.4% | 100% | | EPRA cost ratio targets | 20% | 9.0% | 8.1% | 9.2% | 0% | | Strategic | 40% | See table below | | | 100% | | **Total** | **100%** | | | | **72%** | 1. Adjusted earnings target range was neutralised for the impact of the bond issuance ## Strategic targets | Measure | Weighting | Targets | Committee assessment | | --- | --- | --- | --- | | **Effective delivery of the internalisation** | 12% | - Ensure all key systems are robust - Establishing and carrying out a formal staff appraisal system - Ensure effective governance is in place - Fostering closer relationships between NEDs and Executives and implementation of communication strategy for the CEO and CFO to build relationships with key stakeholders, employees and investors | Target met in full. Successful implementation of new property management software, further enhancing the Company’s internal control framework. All key systems are considered by the Committee to be robust. A formal staff appraisal system was established and implemented, and an employee engagement survey conducted, the results of which were fed back to the Board. Working relationships between NEDs and Executives were fostered and further improved through the introduction of monthly calls to consider specific projects. The CEO and CFO successfully implemented a communication strategy to strengthen relationships with key stakeholders, employees and investors. | | **Successful delivery of capital allocation plans** | 10% | - Deployment exceeds target returns hurdle - JV net proceeds redeployed appropriately - Maintain an active capital recycling programme - Expand SUPR’s asset base into other areas of grocery real estate | Target met in full. £454 million of capital was deployed during the year at an average net initial yield of 6.5%. The capital was deployed at levels that exceeded our required return hurdle. An active capital recycling programme was maintained through the transfer of £232 million of assets into the JV. SUPR’s asset base has expanded into other areas of grocery real estate, namely convenience and smaller format stores. | --- 81 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report**Governance Report**^{}[] Financials Additional Information # Annual Report on Directors' Remuneration continued ## Annual bonus for the year ended 30 June 2026 (audited) continued | **Maintain effective capital structure** | 10% | - Transition SUPR's debt to 100% unsecured - Maintain investment grade, BBB+ credit rating with Fitch - Cost of debt to enable us to deliver growing/sustainable dividend - Maintain sufficient headroom metrics to support delivery of strategy | Target met in full. SUPR's direct debt book was transitioned to 100% unsecured, while its investment grade BBB+ credit rating has been maintained. During the year, the Group issued its debut Sterling unsecured bond, 6-year term and 5.125% coupon. This was a significant part of our debt strategy, which has helped to deliver a cost of debt that supports the delivery of a growing and sustainable dividend. The Company continues to maintain sufficient headroom to bank covenants and bond rating thresholds, ensuring compliance with the Group treasury policy, and to support delivery of the strategy. | | --- | --- | --- | --- | | **Maintain a strong ESG programme** | 8% | - 10% year-on-year increase in volunteering hours - Unqualified assurance statement over reported GHG emissions - Achieve EPRA sBPR Gold award - % of actual (vs estimated) supermarket tenant energy consumption data >50% | Target met in full. Volunteering hours increased by 31.2% year on year, and an unqualified assurance statement was obtained over reported GHG emissions. SUPR achieved the EPRA sBPR Gold award, and actual supermarket tenant energy consumption data exceeded 50%. | ## Annual bonus for the year ended 30 June 2026 (audited) continued The total annual bonus for the year ended 30 June 2026 is set out below: | Executive Director | Base salary £'000 | Max bonus payable (150% basic salary) £'000 | Bonus outcome % of max | Bonus payable £'000 | Cash £'000 | Deferred shares £'000 | | --- | --- | --- | --- | --- | --- | --- | | Rob Abraham | 375 | 563 | 72% | 404 | 202 | 202 | | Mike Perkins | 275 | 413 | 72% | 296 | 148 | 148 | The deferred share awards in respect of the bonus will be granted within the 42-day window following the announcement of the results for the year ended 30 June 2026. The Committee has reviewed the formulaic out-turn of the annual bonus for the CEO and CFO and is comfortable that the awards are reflective of the Company's underlying performance and broader shareholder experience. ### LTIPs due to vest in 2026 (audited) No LTIP awards held by Executive Directors are due to vest in 2026 in respect of performance to 30 June 2026. ### LTIPs granted in the year ended 30 June 2025 (audited) No LTIP awards were granted to Executive Directors in the year ended 30 June 2026 (the last award granted to Executive Directors was on 17 June 2025). --- 82 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information # Annual Report on Directors' Remuneration continued ## Directors' shareholding (audited) Details of the Directors' interests, including those of their immediate families and connected persons, in the issued share capital of the Company at the beginning and end of the year, together with confirmation of whether the required shareholding has been met or whether a Director is still building their holding, are set out in the table below. Executive Directors are expected to meet the minimum shareholding requirements by retaining 100% of the shares acquired, net of tax, under any share plan awarded by the Company. | Director | Shares required to be held (% of salary) | Number of shares required to hold^{1} | Number of beneficially owned shares^{2} | Total interests held at 30 June 2026 | Total interests held at 30 June 2025 | Shareholding requirement met? | | --- | --- | --- | --- | --- | --- | --- | | Rob Abraham | 200 | 853,242 | 0 | 256,744 | 162,173^{3} | No | | Mike Perkins | 200 | 625,711 | 0 | 30,000 | 14,911^{4} | No | | Nick Hewson | – | – | 0 | 1,631,609 | 1,405,609 | n/a | | Vince Prior | – | – | 0 | 213,432 | 213,432 | n/a | | Cathryn Vanderspar | – | – | 9,433 | 125,802 | 125,802 | n/a | | Frances Davies | – | – | 0 | 66,774 | 36,774 | n/a | | Sapna Shah | – | – | 0 | 248,087 | 118,862 | n/a | | Roger Blundell | – | – | 0 | 150,000 | 100,000 | n/a | # Notes 1. Shareholding requirement calculation is based on the share price at 30 June 2026 (87.9 pence) and the Executive Director salaries as at 30 June 2026. The Company does not oblige the Non-Executive Directors to hold shares in the Company, but this is encouraged to ensure the appropriate alignment of interests 2. Beneficial interests include shares held directly or indirectly by connected persons 3. The shareholding comprised 99,226 shares held directly and the remainder held in the Employee Benefit Trust of Atrato (Rob's previous employer) which are now held directly by Rob Abraham 4. Shares were held in the Employee Benefit Trust of Atrato (Mike's previous employer) which are now held directly by Mike Perkins ## Outstanding share awards held by Executive Directors (audited) The table below shows outstanding share awards held by the Executive Directors. LTIP awards are granted in the form of nominal cost options which, in respect of the 2025 LTIP awards, may be exercised from the publication of FY28 results to their expiry on the tenth anniversary of the date of grant. | Executive | Date of grant | Awards outstanding at 1 July 2024 | Awards granted during the year | Awards vested during the year | Awards lapsed during the year | Interests outstanding at 30 June 2025 | Normal vesting/exercise date^{1} | | --- | --- | --- | --- | --- | --- | --- | --- | | Rob Abraham | 17 June 2025 | 993,377 | – | – | – | 993,377 | From publication of FY28 results | | Mike Perkins | 17 June 2025 | 728,476 | – | – | – | 728,476 | From publication of FY28 results | 1. A two-year post-vesting holding period will apply to the extent that awards vest --- 83 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information # Annual Report on Directors' Remuneration continued ## Remuneration advice The Committee received independent advice from FIT Remuneration Consultants LLP ("FIT") during the year ended 30 June 2026. FIT is a member of the Remuneration Consultants Group and, as such, voluntarily operates under the code of conduct in relation to executive remuneration consulting in the UK. The Committee is satisfied that no conflict of interest exists or existed in the provision of these services and FIT do not have any other connection with the Company or individual Directors. The total fees paid to FIT in respect of services to the Committee during the year were £30,926 (ex VAT). Fees are charged on a time plus disbursements basis. ## Implementation of the Remuneration Policy for the year ending 30 June 2027 Details of the proposed implementation of the Policy for the year ending 30 June 2027 are set out in the Annual Statement. ## Chief Executive pay ratio and gender pay As the Company has fewer than 250 employees, there are no CEO pay ratio disclosures to be made and no gender pay analysis in respect of the year ended 30 June 2026. ## Payments to past Directors or for loss of office There have been no payments made to past Directors and no payments made for loss of office in the year. ## Relative importance of spend on pay The table below sets out the overall spend on pay for all employees, Non-Executive Directors and the Investment Adviser's fees and expenses up to termination of the Investment Advisory Agreement compared with the returns distributed to shareholders: | Significant distributions | FY26 £'000 | FY25 £'000 | % change | | --- | --- | --- | --- | | Overall spend on pay for employees (including Executive Directors)^{1} | 3,643 | 539 | 576% | | Non-Executive Directors' fees | 586 | 499 | 17% | | Investment Adviser's fee and expenses^{2} | n/a | 27,593 | – | | Distributions to shareholders by way of dividends | 76,831 | 76,083 | 1% | ### Notes 1. The Group had no employees prior to the completion of the internalisation on 25 March 2025 2. The Investment Advisory Agreement was terminated with effect from 25 March 2025. See note 31 of the consolidated financial statements for further breakdown ## Statement of shareholder voting The table below shows the advisory vote on the Directors' Remuneration Report at the 2025 Annual General Meeting and the binding vote on the Directors' Remuneration Policy at the General Meeting held on 20 March 2025: | AGM resolution | Votes for | % | Votes against | % | Votes withheld | | --- | --- | --- | --- | --- | --- | | Annual Report on Remuneration (2025 AGM) | 623,763,014 | 94.25% | 38,081,877 | 5.75% | 560,015 | | Remuneration Policy (2025 GM) | 659,322,560 | 91.08% | 64,537,031 | 8.92% | 1,195,393 | ## Total shareholder return graph and table The graph below compares, for the period from IPO in 2017 to 30 June 2026, the total return (assuming all dividends are reinvested) to ordinary shareholders compared to both the FTSE All-Share Index (selected because it is a broad equity index considered an indicative measure of the expected return from an equity stock) and the FTSE 350 Supersector Real Estate Index (selected because it includes the majority of listed real estate companies). ![img-38.jpeg](img-38.jpeg) --- 84 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information # Annual Report on Directors' Remuneration continued ## CEO Remuneration package The table below shows the CEO's remuneration package from appointment to 30 June 2026. Prior year data has not been presented given that the Company was previously externally managed. | Year | Name | Single figure £'000^{1} | Bonus (% of max) | LTIP (% of max) | | --- | --- | --- | --- | --- | | to 30 June 2026 | Rob Abraham | 811^{1} | 72% | —^{4} | | to 30 June 2025 | Rob Abraham | 105^{2} | —^{3} | —^{4} | # Notes 1. Base salary, pension, taxable benefits and annual bonus in respect of the year ended 30 June 2026 2. Base salary, pension and taxable benefits from appointment on 25 March 2025 to 30 June 2025 3. No annual bonus operated in respect of the period from appointment to 30 June 2025 4. No LTIPs vested or are due to vest in respect of performance to 30 June 2025 or 30 June 2026 Signed on behalf of the Remuneration Committee by Cathryn Vanderspar | Remuneration Committee Chair 15 September 2026 ![img-39.jpeg](img-39.jpeg) --- 85 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report**Governance Report**^{}[] Financials Additional Information # Directors' Report The Directors present their report together with the audited financial statements for the year ended 30 June 2026. The Corporate Governance Statement on pages 41 and 42 forms part of this report. Additional information which is incorporated into this report by reference, including information required in accordance with the Companies Act 2006 (the "Act") and the UK Listing Rule 6.6.1R, can be found on the following pages: | Information | Relevant section | Page | | --- | --- | --- | | Review of business and future developments | Strategic Report | 12 and 13 | | Section 172 statement | Strategic Report | 29 | | Principal risks | Strategic Report | 34 to 37 | | Greenhouse gas emissions | SECR and TCFD reports, contained within Additional Information | 147 to 160 | | Internal financial control | Audit and Risk Committee Report | 56 to 61 | | Diversity and inclusion | Nomination Committee Report | 62 to 66 | | Monitoring culture | Corporate Governance Report | 47 | | Viability statement | Strategic Report | 38 and 39 | | Financial instruments | Financial statements, note 25 | 130 and 131 | | Directors' details | Corporate Governance Report | 143 and 144 | | Interest capitalised | Financial statements, note 22 | 124 | | Long-term incentive plans | Remuneration Committee Report | 69 to 74 | | Related party transactions | Financial statements, note 32 | 133 to 135 | | Stakeholder engagement | Strategic Report | 30 to 32 | | Subsequent events | Financial statements, note 33 | 135 | ## Principal activities and status The Company is registered as a UK public limited company under the Companies Act 2006. From 1 July 2025 to 16 July 2025, the Company was an Investment Company as defined by Section 833 of the Companies Act 2006 and had a single class of shares in issue which were traded on the closed-ended investment funds category of the FCA's Official List of the LSE's Main Market. Following the Listing Transfer on 16 July 2025, the Company's ordinary shares are now traded on the equity shares (commercial companies) category of the FCA's Official List of the LSE's Main Market. The Company also has a secondary listing on the Johannesburg Stock Exchange ("JSX"). The Group is part of the Real Estate Investment Trust regime for the purposes of UK taxation. ## Results and dividends The results for the year are set out in the attached financial statements. It is the policy of the Board to declare and pay dividends as quarterly interim dividends. In respect of the financial year ended 30 June 2026, the Company has declared the following interim dividends amounting to 6.18 pence per share (2025: 6.12 pence per share). | Relevant period | Dividend per share (pence) | Ex-dividend date | Record date | Date paid | | --- | --- | --- | --- | --- | | Quarter ended | | | | | | 30 September 2025 | 1.545 | 23 October 2025 | 24 October 2025 | 21 November 2025 | | Quarter ended | | | | | | 31 December 2025 | 1.545 | 29 January 2026 | 30 January 2026 | 27 February 2026 | | Quarter ended | | | | | | 31 March 2026 | 1.545 | 7 May 2026 | 8 May 2026 | 29 May 2026 | | Quarter ended | | | | | | 30 June 2026 | 1.545 | 23 July 2026 | 24 July 2026 | 21 August 2026 | ## Dividend policy Subject to market conditions and performance, financial position and outlook, it is the Directors' intention to pay an attractive level of dividend income to shareholders on a quarterly basis. The Company is targeting sustainable annual dividend growth of 2%, supported by investments in long dated, inflation-linked triple-net leases let to leading grocery operators. --- 86 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information # Directors' Report continued ## Powers of Directors The Board will manage the Company's business and may exercise all the Company's powers, subject to the Articles, the Act and, any authority being given to the Directors by shareholders in a general meeting. The Board's role is to provide entrepreneurial leadership of the Company within a framework of prudent and effective controls that enable risk to be assessed and managed. It also sets up the Group's strategic aims, ensuring that the necessary resources are in place for the Group to meet its objectives and review investment performance. The Board also sets the Group's values, standards and culture. Further details on the Board's role can be found in the Corporate Governance Report on pages 40 to 88. ## Appointment and replacement of Directors All Directors were elected or re-elected at the AGM on 24 November 2025. In accordance with the UK Code, all the Directors will retire and those who wish to continue to serve will offer themselves for election or re-election at the forthcoming Annual General Meeting. ## Directors' indemnity The Company maintained £50 million of Directors' and Officers' liability insurance cover for the benefit of the Directors throughout the year which renewed on 3 August 2026 and continues in effect at the date of this report. ## Significant shareholdings The table below shows the interests in shares notified to the Company in accordance with Chapter 5 of the Disclosure Guidance and Transparency Rules issued by the Financial Conduct Authority who have a disclosable interest of 3% or more in the ordinary shares of the Company as at 30 June 2026. | | Number of shares | Percentage of issued share capital | | --- | --- | --- | | BlackRock Inc. | 83,524,552 | 6.69% | | Evelyn Partners Limited | 62,300,436 | 5.00% | | Close Asset Management Limited | 62,147,569 | 4.99% | | Quilter Plc | 62,058,617 | 4.99% | | Ameriprise Financial, Inc. | 59,969,508 | 4.81% | Since the year end, and up to 15 September 2026, the Company has received the following further notifications of changes of interest in its ordinary shares in accordance with DTR 5. The information provided is correct as at the date of publication of this report. | | Number of shares | Percentage of issued share capital | | --- | --- | --- | | BlackRock, Inc. | 96,553,639 | 7.05% | | TrinityBridge Limited | 63,197,448 | 4.62% | ## Donations and contributions The Group made charitable donations of £123,000 supporting over 10 different charities across the UK during the year. No political donations were made in the year. ## Branches outside the UK The Company has no branches outside the UK. ## Amendments to the Articles The Articles may only be amended with shareholders' approval in accordance with the relevant legislation. ## Employees At 30 June 2026, the Company had 19 employees, including the Executive Directors. The Board recognises the importance of attracting, developing and retaining the right people. The Company operates a non-discriminatory employment policy which provides equal opportunities for all employees irrespective of gender, ethnicity, sexual orientation, disability, education, professional and socioeconomic backgrounds and neurodiversity. A significant number of employees are eligible to participate in the annual bonus and LTIP arrangements. 100% of employees participated in the 2025 LTIP award. Further LTIP awards will be made at the appropriate time in accordance with the LTIP scheme rules. The Company provides retirement benefits for its employees and Executive Directors. Further details of how we engage with employees can be found on page 31. --- 87 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information # Directors' Report continued ## Human rights The Company has a zero-tolerance approach to modern slavery and human trafficking and is committed to ensuring its organisation and business partners operate with the same values. The Company's modern slavery and human trafficking statement can be found on the Company's website. ## Anti-bribery policy The Company has a zero-tolerance policy towards bribery and is committed to carrying out its business fairly, honestly and openly. The anti-bribery policies and procedures apply to all its Directors, employees and to those who represent the Company. ## Research and development No expenditure on research and development was made during the period. ## Annual General Meeting The Annual General Meeting of the Company will be held on 25 November 2026 at 10.00am at Macfarlanes, 20 Cursitor Street, London EC4A 1LT. ## Disclosure of information to auditor All of the Directors have taken all the steps that they ought to have taken to make themselves aware of any information needed by the auditor for the purposes of their audit and to establish that the auditor is aware of that information. The Directors are not aware of any relevant audit information of which the auditor is unaware. ## Significant agreements There are no agreements with the Company or a subsidiary in which a Director has or had a material interest or to which a controlling shareholder was party. ## Share capital structure As at the date of this report, the Company's issued share capital consists of 1,366,721,113 ordinary shares of one penny each, all fully paid and listed on the equity shares (commercial companies) ("ESCC") listing category of the London Stock Exchange's Main Market. The Company also has a secondary listing on the JSX. Further details of the share capital, including changes throughout the year, are summarised in note 26 of the financial statements. Subject to authorisation by shareholder resolution, the Company may purchase its own shares in accordance with the Companies Act 2006. At the Annual General Meeting held in 2025, shareholders authorised the Company to make market purchases of up to 186,811,253 ordinary shares. The Company has not repurchased any of its ordinary shares under this authority, which is due to expire at the AGM in 2026 and appropriate renewals will be sought. There are no restrictions on transfer or limitations on the holding of the ordinary shares. None of the shares carry any special rights with regard to the control of the Company. There are no known arrangements under which financial rights are held by a person other than the holder of the shares and no known agreements on restrictions on share transfers and voting rights. ## Subsequent events For details of events since the year end date, please refer to note 33 of the consolidated financial statements. ## Corporate governance The Company's statement on corporate governance can be found in the Corporate Governance Report on pages 41 and 88 of this Annual Report. The Corporate Governance Report forms part of this Directors' Report and is incorporated into it by cross-reference. Signed by order of the Board on 15 September 2026. **Nick Hewson** | Chair 15 September 2026 --- 88 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information # Directors' responsibilities statement The Directors are responsible for preparing the Annual Report and Accounts in accordance with applicable law and regulations. The UK Companies Act 2006 requires the Directors to prepare financial statements for each financial period. Under that law, the Directors have elected to prepare the Group financial statements in accordance with UK adopted international accounting standards and the Company financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland". Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and Company and of the profit or loss of the Group for that period. In preparing these financial statements, the Directors are required to: - Select suitable accounting policies and then apply them consistently. - Make judgements and accounting estimates that are reasonable and prudent. - State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements. - Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group and Company will continue in business. - Prepare a Directors' Report, a Strategic Report, Directors' Remuneration Report and Corporate Governance Statement which comply with the requirements of the Companies Act 2006. The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the requirements of the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Directors are responsible for ensuring that the Annual Report and Accounts, taken as a whole, are fair, balanced and understandable and provides the information necessary for shareholders to assess the Group's performance, business model and strategy. The Company is required to make the Annual Report and Accounts available on a website. The Company's website address is www.supermarketincomereit.com. Financial statements are published on the Company's website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from such legislation in other jurisdictions. The maintenance and integrity of the Company's website is the responsibility of the Directors. The Directors' responsibility also extends to the ongoing integrity of the financial statements contained therein. ## Responsibility Statement The Directors confirm that to the best of their knowledge: - The Group financial statements, prepared in accordance with UK adopted international accounting standards, and the Company financial statements, prepared in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 "The Financial Reporting Standard" applicable in the UK and Republic of Ireland, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group. - The Annual Report and Accounts include a fair review of the development and performance of the business and the position of the Group and Company, together with a description of the principal risks and uncertainties that they face. - The Annual Report and Accounts taken as a whole, is fair, balanced and understandable and the information provided to shareholders is sufficient to allow them to assess the Group's performance, business model and strategy. This Responsibility Statement was approved by the Board of Directors and is signed on its behalf by Nick Hewson | Chair 15 September 2026 --- 89 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information # Financials ## What's in this section? - Independent auditor's report to the members of Supermarket Income REIT plc 90 - Consolidated statements 98 - Notes to the consolidated financial statements 103 - Company financial statements 136 - Notes to the Company financial statements 138 - Unaudited supplementary information 141 SmartShop SmartShop ![img-40.jpeg](img-40.jpeg) ![img-41.jpeg](img-41.jpeg) Sainsbury's Melksham --- 90 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information # Independent auditor's report to the members of Supermarket Income REIT plc ## Report on the audit of the financial statements ### Opinion In our opinion: - the financial statements give a true and fair view of the state of the Group's and of the Company's affairs as at 30 June 2026 and of the Group's profit and the Group's cash flows for the year then ended; - the Group financial statements have been properly prepared in accordance with UK adopted international accounting standards; - the Company financial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - the financial statements have been prepared in accordance with the requirements of the Companies Act 2006. We have audited the financial statements of Supermarket Income REIT plc (the "Company") and its subsidiaries (the "Group") for the year ended 30 June 2026 which comprise of the following: | Group | Company | | --- | --- | | Consolidated statement of comprehensive income | Company statement of financial position | | Consolidated statement of financial position | Company statement of changes in equity | | Consolidated statement of changes in equity | Notes A to J to the Company financial statements | | Consolidated cash flow statement | | | Notes 1 to 33 to the consolidated financial statements | | | Material and significant accounting policy information. | | The financial reporting framework that has been applied in the preparation of the Group financial statements is applicable law and UK adopted international accounting standards. The financial reporting framework that has been applied in the preparation of the Company financial statements is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). ### Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) ("ISAs (UK)") and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## Independence We remain independent of the Group and the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard as applied to listed public interest entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements. The non-audit services prohibited by the FRC's Ethical Standard were not provided to the Group or the Company and we remain independent of the Group and the Company in conducting our audit. ## Conclusions relating to going concern In auditing the financial statements, we have concluded that the Directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our evaluation of the Directors' assessment of the Group and the Company's ability to continue to adopt the going concern basis of accounting included: - using our knowledge of the Group and its market sector together with the current economic environment to assess the Directors' identification of the inherent risks to the Group's business and how these might impact the Group's ability to remain a going concern for the going concern period, being the period to 30 September 2027, which is at least 12 months from when the financial statements are authorised for issue; - obtaining an understanding of the Directors' process for assessing going concern including an understanding of the key assumptions used; - we have reviewed the forecasts that support the Directors' going concern assessment and: - assessed the Group's forecast cash flows with reference to budgeted and historic performance and challenged management's forecast assumptions in comparison to the current performance of the Group; - agreed the inputs into the forecasts to supporting documentation for reasonableness based on contractual agreements, where available; and - agreed the Group's available borrowing facilities, including the most recent refinancing of debt in July 2026 and the related covenants to supporting financing documentation and calculations; - analysing the sensitivities applied by the Directors' stress testing calculations and challenging the assumptions made using our knowledge of the business and of the current economic climate, to assess the reasonableness of the downside scenarios selected; - obtaining covenant calculations and forecast calculations to test for any potential future covenant breaches; - considering the covenant compliance headroom for sensitivity to both future changes in property valuations and the Group's future financial performance; - considering Board minutes, and evidence obtained through the audit, and challenged the Directors on the identification of any contradictory information in the forecasts and the resultant impact to the going concern assessment; and - reviewing the disclosures in the financial statements relating to going concern to check that the disclosure is consistent with the circumstances. --- 91 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information # Independent auditor's report continued to the members of Supermarket Income REIT plc ## Report on the audit of the financial statements continued ### Conclusions relating to going concern continued Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group and the Company's ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the Group and the Company's ability to continue as going concern. In relation to the Group's reporting on how it has applied the UK Corporate Governance Code, we have nothing material to add or draw attention to in relation to the Directors' statement in the financial statements about whether the Directors considered it appropriate to adopt the going concern basis of accounting in preparing the financial statements. Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report. ### Overview | | 2026 | 2025 | | --- | --- | --- | | **Key audit matter** | Valuation of investment properties | ✓ | | **Materiality** | Group financial statements as a whole £18.7m (2025: £17.5m) based on 1% (2025: 1%) of Group total assets. | | ### An overview of the scope of our audit Our Group audit was scoped by obtaining an understanding of the Group and its environment, the applicable financial reporting framework and the Group's system of internal control. We identified and assessed the risks of material misstatement of the Group financial statements including with respect to the consolidation process. We then applied professional judgement to focus our audit procedures on the areas that posed the greatest risks to the Group financial statements. We continually assessed risks throughout our audit, revising the risks where necessary, with the aim of reducing the Group risk of material misstatement to an acceptable level, in order to provide a basis for our opinion. ### Components in scope The Group, through its subsidiaries, operates in the United Kingdom and France in one segment, investment property. The Group is considered a single component as it invests only in supermarket assets with a single finance team and a common IT system and internal control framework and, as such, the audit approach included undertaking audit work on the key risks of material misstatements identified for the Group across the subsidiary entities. The Group's single joint venture has been considered as a separate component due to its distinct governance and control structures, along with risks being unique from the rest of the Group. The Group audit engagement team performed full scope audits in order to issue the Group and Company audit opinion, including undertaking all of the audit work on the risks of material misstatement identified in the key audit matters section below. As a result of our audit approach, we achieved coverage of 100% of rental income and 100% of investment property valuations. As part of performing our Group audit, we have determined the components in scope as follows: - the Company and its subsidiaries; and - the Group's single joint venture. For components in scope, we used a combination of risk assessment procedures and further audit procedures to obtain sufficient appropriate evidence. These further audit procedures included: - procedures on the entire financial information of the component, including performing substantive procedures; and - procedures on one or more classes of transactions, account balances or disclosures. ### Procedures performed at the component level We performed procedures to respond to Group risks of material misstatement at the component level that included the following. | Component | Component name | Entity | Group audit scope | | --- | --- | --- | --- | | 1 | Component 1 | The Company and its subsidiaries | Statutory audit and procedures on the entire financial information of the component. | | 2 | Component 2 | The joint venture | Procedures on one or more classes of transactions, account balances or disclosures | The Group engagement team has performed all procedures directly and has not involved component auditors in the Group audit. --- 92 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information # Independent auditor's report continued to the members of Supermarket Income REIT plc ## Report on the audit of the financial statements continued ### An overview of the scope of our audit continued #### Procedures performed centrally We considered there to be a high degree of centralisation of financial reporting, commonality of controls and similarity of the Group's activities and business lines. We therefore designed and performed procedures centrally. The Group operates a centralised IT function that supports IT processes for certain components. This IT function is subject to specified risk-focused audit procedures, predominantly the testing of the relevant IT general controls and IT application controls. #### Changes from the prior year The Group audit scope remained consistent with the prior year. There were no changes in the Group's structure or control environment that required revisions to the components in scope or the nature or extent of audit procedures performed. #### How climate change affected the scope of our audit The Group has determined that climate change does not currently have a material impact on its operations. Our work on the assessment of potential impacts of climate-related risks on the Group's operations and financial statements included: - enquiries and challenge of management to understand the actions they have taken to identify climate-related risks and their potential impacts on the financial statements and adequately disclose climate-related risks within the Annual Report; - our own qualitative risk assessment taking into consideration the sector in which the Group operates and how climate change affects this particular sector; and - review of the minutes of Board, Audit and Risk Committee and ESG Committee meetings and other papers related to climate change and performed a risk assessment as to how the impact of the Group's commitment as set out in the Group's Sustainability Report and TCFD Compliance Report may affect the financial statements and our audit. We challenged the extent to which climate-related considerations, including the expected cash flows from the initiatives and commitments have been reflected, where appropriate, in the Directors' going concern assessment and viability assessment and in management's judgements and estimates in relation to the valuation of the Group's investment properties. The management disclosures on page 149 form part of the Strategic Report. Our responsibilities in relation to these disclosures are described in the relevant section of this report and our procedures on these disclosures therefore consisted solely of considering whether they are materially inconsistent with the financial statements or our knowledge obtained from the audit or otherwise appear to be materially misstated. #### Key audit matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) that we identified, including those which had the greatest effect on: the overall audit strategy, the allocation of resources in the audit, and directing the efforts of the engagement team. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. --- 93 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information # Independent auditor's report continued to the members of Supermarket Income REIT plc ## Report on the audit of the financial statements continued ### Key audit matters continued Key audit matter #### Valuation of investment properties 2026: £1,574.9 million (2025: £1,415.8 million) As detailed in note 15, the Group owns a portfolio of investment properties which, as described in the accounting policy in note 2.12, are held at fair value in the Group financial statements. As described in the 'significant accounting judgements, estimates and assumptions' section of note 1, valuation of investment properties is a key area of estimation. Refer to note 15 in relation to the carrying value of investment properties. The Group's investment property portfolio is made up of standing assets that are existing properties currently let. They are valued using the income capitalisation method, in accordance with RICS methodology and IFRS 13 Fair Value Measurement. The valuation of investment properties requires significant judgement and estimates by the Directors, with the assistance of independent external valuers appointed by management and is therefore considered a significant risk due to the subjective nature of certain assumptions inherent in each valuation. Any input inaccuracies or unreasonable bases used in the valuation judgements (such as in respect of current or estimated rental value and yield profile applied) could result in a material misstatement of the Group's financial statements. There is also a risk of fraud in relation to the valuation of the investment properties where the Directors may influence the significant judgements and estimates in respect of property valuations in order to achieve property valuation and other performance targets. For these reasons we considered the valuation of investment properties to be a key audit matter. How the scope of our audit responded to the risk #### Group's controls relating to the valuation of investment properties We reviewed and evaluated the design, implementation and appropriateness of the Group's controls relating to the valuation of investment properties, including the processes by which the Group ensures that complete and accurate data is provided to the valuers as well as management's review of the valuation outputs. In doing so, we performed a walkthrough of the relevant controls by obtaining support for the design and implementation of the controls. #### Experience of valuers and relevance of their work We obtained the valuation reports prepared by the independent valuers and, with the assistance of BDO in-house RICS qualified valuers, discussed the basis of the valuations with them, read the valuation reports and confirmed that all valuations had been prepared in accordance with applicable valuation guidelines and the requirements of the applicable accounting standards and were therefore appropriate for determining the carrying value in the Group's financial statements. We assessed the competency, qualifications, independence and objectivity of the independent external valuers engaged by the Group and reviewed the terms of their engagement for any unusual arrangements, limitations in the scope of their work or evidence of management bias. #### Data provided to the valuers We validated the underlying data provided to the independent external valuers by management. This data included inputs such as current rent and lease terms, which we agreed on a sample basis to the executed lease agreements as part of our audit work. #### Assumptions and estimates used by the valuers With assistance from BDO in-house RICS qualified valuers, we developed yield expectations on each property using available independent industry data, reports and comparable transactions in the market around the year end. They also attended the audit meetings with the Group's valuers to assist us in assessing that explanations provided were appropriate and in line with market knowledge. We compared the key valuation assumptions against our independently formed market expectations (by reference to market data based on the lease arrangements and specifics of each property). We discussed the assumptions used and the valuation movement in the year with both management and the independent external valuers. Where the valuation was outside of our expected range, we challenged the independent valuers on specific assumptions and reasoning for the yields applied and corroborated their explanations where relevant, including agreeing to third-party documentation. Further, we challenged the appropriateness of the yields applied to the valuations with the valuers and where possible obtained evidence of comparable market transactions through independent sources. #### Key observations Based on our work, we consider the assumptions adopted by the Directors in the valuation were reasonable and the methodology applied was appropriate. ## Our application of materiality We apply the concept of materiality both in planning and performing our audit, and in evaluating the effect of misstatements. We consider materiality to be the magnitude by which misstatements, including omissions, could influence the economic decisions of reasonable users that are taken on the basis of the financial statements. In order to reduce to an appropriately low level the probability that any misstatements exceed materiality, we use a lower materiality level, performance materiality, to determine the extent of testing needed. Importantly, misstatements below these levels will not necessarily be evaluated as immaterial as we also take account of the nature of identified misstatements, and the particular circumstances of their occurrence, when evaluating their effect on the financial statements as a whole. --- 94 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report**Financials**^{}[] Additional Information # Independent auditor’s report continued to the members of Supermarket Income REIT plc ## Report on the audit of the financial statements continued ### Our application of materiality continued Based on our professional judgement, we determined materiality for the financial statements as a whole and performance materiality as follows: | | Group financial statements | | Company financial statements | | | --- | --- | --- | --- | --- | | | 2026 £m | 2025 £m | 2026 £m | 2025 £m | | **Materiality** | **18.7** | **17.5** | **16.8** | **15.8** | | **Basis for determining materiality** | Materiality for the Group financial statements was set at 1% of total assets (2025: 1%). This provides a basis for determining the nature and extent of our risk assessment procedures, identifying and assessing the risk of material misstatement and determining the nature and extent of further audit procedures. Materiality for the Company financial statements was capped at 90% (2025: 90%) of the Group materiality. | | | | | **Rationale for the benchmark applied** | We determined that total assets would be the most appropriate basis for determining overall materiality as we consider it to be the principal consideration for the users of the financial statements in assessing the financial performance of the Group and the Company. | | | | | **Performance materiality** | **14.0** | **13.1** | **12.6** | **11.9** | | **Basis for determining performance materiality** | Performance materiality is set at an amount to reduce to an appropriate low level the probability that the aggregate of uncorrected and undetected misstatements exceeds materiality. On the basis of our risk assessment, together with our assessment of the Group’s overall control environment, our judgement was that overall performance materiality for the Group should be 75% (2025: 75%) of materiality. We determined that the same measure as the Group was appropriate for the Company. | | | | | **Rationale for the percentage applied for performance materiality** | We determined that 75% of materiality would be appropriate based on our risk assessment, together with our assessment of the Group’s and Company’s overall control environment, the low number of components and the low value of brought forward adjustments impacting the current year. | | | | ### Specific materiality We also determined that for other account balances and classes of transactions that impact the calculation of European Public Real Estate Association (“EPRA”) earnings a misstatement of less than materiality for the financial statements as a whole, specific materiality, could influence the economic decisions of users. We consider EPRA earnings to be a key performance measure of the Group. EPRA earnings exclude the impact of the net gain on revaluation of investment properties, loss on disposal of investment properties, changes in the fair value of interest rate derivatives as well as other non-operating and exceptional items. As a result, we determined materiality for these items to be £3.5 million (2025: £3.7 million), based on 5% (2025: 5%) of EPRA earnings. We further applied a performance materiality level of 75% (2025: 75%) of specific materiality to ensure that the risk of errors exceeding specific materiality was appropriately mitigated. ### Component performance materiality For the purposes of our Group audit opinion, we set performance materiality for each component of the Group, apart from the Company whose materiality and performance materiality are set out above, based on a percentage of the Group performance materiality. This is based on our assessment of the risk of material misstatement of those components. Component performance materiality was set at £13.3 million and component specific materiality was set at £2.4 million. ### Reporting threshold We agreed with the Audit and Risk Committee that we would report to them all individual audit differences in excess of £935,000 (2025: £185,000) and for those items impacting the calculation of EPRA earnings £175,000 (2025: £185,000). We also agreed to report differences below these thresholds that, in our view, warranted reporting on qualitative grounds. ### Other information The Directors are responsible for the other information. The other information comprises the information included in the ‘Annual Report’ other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. --- 108 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report**Financials**^{}[] Additional Information # Notes to the consolidated financial statements continued ## 2. Summary of material accounting policies continued ### 2.14. Financial assets and liabilities continued #### Trade and other receivables Trade and other receivables, including rents receivable, are recognised and carried at the lower of their original invoiced value and recoverable amount. Provisions for impairment are calculated using an expected credit loss model. Balances will be written off in profit or loss in circumstances where the probability of recovery is assessed as being remote. #### Trade and other payables Trade and other payables are recognised initially at their fair value and subsequently at amortised cost. #### Bank borrowings Bank borrowings are initially recognised at fair value net of attributable transaction costs. After initial recognition, bank borrowings are subsequently measured at amortised cost, using the effective interest method. The effective interest rate is calculated to include all associated transaction costs. In the event of a modification to the terms of a loan agreement, the Group considers both the quantitative and qualitative impact of the changes. Where a modification is considered substantial, the existing facility is treated as settled and the new facility is recognised. Where the modification is not considered substantial, the carrying value of the liability is restated to the present value of the cash flows of the modified arrangement, discounted using the effective interest rate of the original arrangement. The difference is recognised as a gain or loss on refinancing through the statement of comprehensive income. #### Derivative financial instruments and hedge accounting The Group's derivative financial instruments currently comprise of interest rate swaps and caps. Derivatives designated as hedging instruments utilise hedge accounting under IAS 39. Derivatives not designated under hedge accounting are accounted for under IFRS 9. These instruments are used to manage the Group's cash flow interest rate risk. The instruments are initially recognised at fair value on the date that the derivative contract is entered into, being the cost of any premium paid at inception, and are subsequently remeasured at their fair value at each reporting date. Derivatives are classified as current or non-current based on their settlement timing, with portions due within 12 months of the balance sheet date classified as current and those settling later as non-current. #### Fair value measurement of derivative financial instruments The fair value of derivative financial instruments is the estimated amount that the Group would receive or pay to terminate the agreement at the period end date, taking into account current interest rate expectations and the current credit rating of the relevant Group entity and its counterparties. The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data is available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs significant to the fair value measurement as a whole. A number of assumptions are used in determining the fair values including estimations over future interest rates and therefore future cash flows. The fair value represents the net present value of the difference between the cash flows produced by the contract rate and the valuation rate. #### Hedge accounting At the inception of a hedging transaction, the Group documents the relationship between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking the hedging transaction. The Group also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items. Assuming the criteria for applying hedge accounting continue to be met, the effective portion of gains and losses on the revaluation of such instruments is recognised in other comprehensive income and accumulated in the cash flow hedging reserve. Any ineffective portion of such gains and losses will be recognised in profit or loss within finance income or expense as appropriate. The cumulative gain or loss recognised in other comprehensive income is reclassified from the cash flow hedge reserve to profit or loss (finance expense) at the same time as the related hedged interest expense is recognised. Interest rate derivatives that do not qualify under hedge accounting are carried in the Group statement of financial position at fair value, with changes in fair value recognised in the Group statement of comprehensive income, net of interest receivable/payable from the derivatives shown in the finance income or expense line. ### 2.15. Equity instruments Equity instruments issued by the Company are recorded at the amount of the proceeds received, net of directly attributable issue costs. Costs not directly attributable to the issue are immediately expensed in profit or loss. No shares were issued in the period. --- 109 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report**Financials**^{}[] Additional Information # Notes to the consolidated financial statements continued for the year ended 30 June 2026 ## 2. Summary of material accounting policies continued ### 2.16. Fair value measurements and hierarchy Fair value is the price that would be received on the sale of an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction takes place either in the principal market for the asset or liability, or in the absence of a principal market, in the most advantageous market. It is based on the assumptions that market participants would use when pricing the asset or liability, assuming they act in their economic best interest. A fair value measurement of a non-financial asset takes into account the best and highest value use for that asset. The fair value hierarchy to be applied under IFRS 13 is as follows: **Level 1:** Quoted (unadjusted) market prices in active markets for identical assets or liabilities. **Level 2:** Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable. **Level 3:** Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. For assets and liabilities that are carried at fair value and which will be recorded in the financial statements on a recurring basis, the Group will determine whether transfers have occurred between levels in the hierarchy by reassessing categorisation at the end of each reporting period. ## 3. Operating segments Operating segments are identified on the basis of internal financial reports about components of the Group that are regularly reviewed by the chief operating decision maker (which in the Group's case is the Board) in order to allocate resources to the segments and to assess their performance. The internal financial reports contain financial information at a Group level as a whole and there are no reconciling items between the results contained in these reports and the amounts reported in the consolidated financial statements. These internal financial reports include the IFRS figures but also report the non-IFRS figures for the EPRA and alternative performance measures as disclosed in notes 13, 31 and the Additional Information. The Group's property portfolio comprises investment property. The Board considers that all the properties have similar economic characteristics. Therefore, in the view of the Board, there is one reportable segment. The geographical split of revenue and material applicable non-current assets was: | Revenue | Year to 30 June 2026 £'000 | Year to 30 June 2025 £'000 | | --- | --- | --- | | UK | 89,755 | 108,593 | | France | 11,388 | 5,416 | | | **101,143** | **114,009** | | Investment properties | As at 30 June 2026 £'000 | As at 30 June 2025 £'000 | | --- | --- | --- | | UK | 1,373,660 | 1,320,430 | | France | 201,215 | 95,389 | | | **1,574,875** | **1,415,819** | ## 4. Rental income | | Year to 30 June 2026 £'000 | Year to 30 June 2025 £'000 | | --- | --- | --- | | Rental income – freehold property | 73,701 | 64,172 | | Rental income – long leasehold property | 27,442 | 49,837 | | **Gross rental income** | **101,143** | **114,009** | | | **Year to 30 June 2026 £'000** | **Year to 30 June 2025 £'000** | | Service charge recoverable | 7,597 | 7,387 | | Property insurance recoverable | 1,260 | 980 | | Property tax recoverable | 1,214 | 677 | | **Total property insurance and service charge income** | **10,071** | **9,044** | | **Total property income** | **111,214** | **123,053** | The joint venture and the financial asset at amortised cost operate in the UK only. Included within rental income is a £1.7 million (2025: £1.9 million) rent smoothing adjustment that arises as a result of IFRS 16 Leases requiring that rental income in respect of leases with rents increasing by a fixed percentage to be accounted for on straight-line basis over the lease term. During the period this resulted in an increase in rental income and an offsetting entry being recognised in profit or loss as an adjustment to the investment property revaluation. --- 110 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information ## Notes to the consolidated financial statements continued for the year ended 30 June 2026 ### 5. Service charge expense | | Year to 30 June 2026 £'000 | Year to 30 June 2025 £'000 | | --- | --- | --- | | Service charge expenses | 8,155 | 8,000 | | Property insurance expenses | 1,335 | 1,139 | | Property tax expenses | 1,236 | 680 | | **Total property insurance and service charge expense** | **10,726** | **9,819** | ### 6. Administrative and other expenses | | Year to 30 June 2026 £'000 | Year to 30 June 2025 £'000 | | --- | --- | --- | | Investment Adviser fees (note 32) | – | 6,793 | | Non-Executive Directors' fees (note 9) | 586 | 499 | | Staff costs (note 10) | 4,065 | 555 | | Corporate administration fees | 1,025 | 1,212 | | Legal and professional fees | 2,453 | 2,880 | | Cosec, admin and accounting | 564 | 419 | | Other administrative expenses | 2,005 | 2,111 | | **Total administrative and other expenses** | **10,698** | **14,469** | ### 7. Other income | | Year to 30 June 2026 £'000 | Year to 30 June 2025 £'000 | | --- | --- | --- | | Joint venture management fee (note 17) | 3,039 | 305 | | **Total other income** | **3,039** | **305** | ### 8. Operating profit Operating profit is stated after charging fees for: | | Year to 30 June 2026 £'000 | Year to 30 June 2025 £'000 | | --- | --- | --- | | Audit of the Consolidated and Company financial statements | 491 | 410 | | Audit of subsidiaries, pursuant to legislation | 45 | 93 | | **Total audit services** | **536** | **503** | | Non-audit services: interim review | 46 | 44 | | Non-audit services: corporate finance services in connection to the bond issuance | 40 | – | | **Total audit and non-audit services** | **622** | **547** | ### 9. Directors' remuneration The Board of Directors are the key management personnel of the Company. The Non-Executive Directors are appointed under letters of appointment for service while Executive Directors are under service contracts. Directors' remuneration was as follows: | | Year to 30 June 2026 £'000 | Year to 30 June 2025 £'000 | | --- | --- | --- | | Non-Executive Directors' fees | 524 | 445 | | Social security costs | 62 | 54 | | Executive Director costs: | | | | Wages and salaries | 1,001 | 168 | | Social security costs | 158 | 18 | | Pension costs | 52 | 14 | | Equity-settled share-based payments | 337 | – | | **Total Directors' remuneration** | **2,134** | **699** | The highest-paid Non-Executive Director received £150,000 (2025: £97,000) for services during the year. The highest-paid Executive Director received £810,774 (25 March 2025 to 30 June 2025: £105,000) for services during the year. --- 111 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information # Notes to the consolidated financial statements continued for the year ended 30 June 2026 ## 9. Directors' remuneration continued Total remuneration for key management personnel amounts to £2,134,000 (2025: £711,000) which includes equity-settled share-based payments of £337,000 (2025: £12,000). Prior to the internalisation of the management function on 25 March 2025, the Group had no employees. Following the internalisation, the Executive Directors became employees of the Group. Accordingly, the year ended 30 June 2026 represents the first full financial year in which the Group's results include remuneration costs relating to the Executive Directors. For further information regarding Directors' remuneration, see the Directors' Remuneration Report on pages 79 to 84. ## 10. Staff costs | | Year to 30 June 2026 £'000 | Year to 30 June 2025 £'000 | | --- | --- | --- | | Wages and salaries | 2,974 | 444 | | Social security costs | 435 | 54 | | Pension costs | 236 | 41 | | Equity-settled share-based payments | 420 | 16 | | **Total staff costs** | **4,065** | **555** | All of the staff costs above are shown within administrative and other expenses, this also includes Executive Directors. The average number of employees, including Executive Directors, in the year to 30 June 2026 was 18 (2025: 15). Prior to the internalisation of the management function on 25 March 2025, the Group had no employees. Following the internalisation, the Group employed a team of staff. Consequently, the year ended 30 June 2026 represents the first full financial year in which staff remuneration costs have been recognised within the Group's results. ## Equity-settled share option plan The Group established a long-term incentive plan following consultation with a number of its largest shareholders and as outlined in the Directors' Remuneration Policy in the circular published on 4 March 2025 in relation to the internalisation of the Company's management function. Employees were granted their first awards on 17 June 2025 and the vesting period is to the announcement of the 2028 results, expected to be mid-September 2028. No further awards were granted in the year to 30 June 2026. Each employee share option converts into one ordinary share of the Company on exercise. No amounts are paid or payable by the recipient on receipt of the option. The options carry neither rights to dividends nor voting rights. Options may be exercised at any time from the date of vesting to the date of their expiry. The number of options granted is calculated in accordance with the performance-based formula approved by shareholders at the previous Annual General Meeting and is subject to approval by the Remuneration Committee. The formula rewards employees to the extent of the Group's and the individual's achievement judged against both qualitative and quantitative criteria from the following conditions: - relative total shareholder return; - improvement in earnings per share; - improvement in total accounting return; and - personal performance. Details of the share options outstanding during the year are as follows: | | 30 June 2026 | | 30 June 2025 | | | --- | --- | --- | --- | --- | | | Number of share options | Weighted average exercise price | Number of share options | Weighted average exercise price | | Outstanding at the beginning of the year | 2,331,582 | £0.01 | – | – | | Granted during the year | – | – | 2,331,582 | £0.01 | | Forfeited during the year | (21,323) | £0.01 | – | – | | **Outstanding at the year end** | **2,310,259** | **£0.01** | **2,331,582** | **£0.01** | | **Exercisable at the year end** | **–** | **–** | **–** | **–** | An independent valuation of the fair value of these shares was carried out at the grant date. The valuation was prepared in accordance with IFRS 2: Share-based Payments. --- 112 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information ## Notes to the consolidated financial statements continued for the year ended 30 June 2026 ### 10. Staff costs continued For the market condition of total shareholder return a stochastic model was used and the Black-Scholes model was used for the non-market conditions. The assumptions used are as follows: | Date of grant | 17 June 2025 | | --- | --- | | Share price at grant | £0.83 | | Exercise price | £0.01 | | Expected volatility | 25.66% | | Expected term | 3.26 years | | Risk-free rate | 3.94% | | Expected dividend yield | 0% | | Fair value (market conditions) | £0.4543 | | Fair value (non-market conditions) | £0.8299 | Awards to Executive Directors have a holding period of two years from vesting and a Chaffe model was used to estimate a discount for the lack of marketability ("DLOM"). The assumptions used are as follows: | Date of grant | 17 June 2025 | | --- | --- | | Share price at grant | £0.83 | | Exercise price | £0.83 | | Expected volatility | 23.63% | | Expected term | 2.0 years | | Risk-free rate | 4.07% | | Expected dividend yield | 0% | | Fair value (market conditions) | £0.4322 | | Fair value (non-market conditions) | £0.7894 | | DLOM | 9.21% | The Board has made an assessment of the non-market performance conditions as at 30 June 2026, with any adjustment to expected value being recognised in the share-based payment expense in the statement of comprehensive income. ### 11. Finance income and expense | Finance income | Year to 30 June 2026 £'000 | Year to 30 June 2025 £'000 | | --- | --- | --- | | Interest received on bank deposits | 795 | 113 | | Income from financial assets held at amortised cost (note 18) | 512 | 502 | | Interest received on loans within joint venture | 2,591 | 605 | | Finance income on settlement of interest rate derivatives (note 22) | 3,445 | 18,468 | | **Total finance income** | **7,343** | **19,688** | | Finance expense | Year to 30 June 2026 £'000 | Year to 30 June 2025 £'000 | | --- | --- | --- | | Interest on lease liabilities | 9 | – | | Interest payable on bank borrowings | 36,607 | 43,557 | | Commitment fees payable on bank borrowings | 1,114 | 747 | | Amortisation of loan arrangement fees^{1} | 2,888 | 2,369 | | **Total finance expense** | **40,618** | **46,673** | | **Net finance expense** | **33,275** | **26,985** | 1. This includes a non-recurring exceptional charge of £1,259,000 (2025: £236,000), relating to the acceleration of unamortised arrangement fees in respect of the modification of loan facilities under IFRS 9 and Group debt refinancing in July 2026 The above finance expense includes the following in respect of liabilities not classified as fair value through profit and loss: | | Year to 30 June 2026 £'000 | Year to 30 June 2025 £'000 | | --- | --- | --- | | Total interest expense on financial liabilities held at amortised cost | 39,495 | 45,926 | | Fee expense not part of effective interest rate for financial liabilities held at amortised cost | 1,123 | 747 | | **Total finance expense** | **40,618** | **46,673** | --- 113 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information ## Notes to the consolidated financial statements continued for the year ended 30 June 2026 ### 12. Taxation #### A) Tax credit in profit or loss | | Year to 30 June 2026 £'000 | Year to 30 June 2025 £'000 | | --- | --- | --- | | UK corporation tax | – | – | | France corporation tax | – | – | | UK deferred tax | – | – | | France deferred tax (note 24) | (1,437) | (871) | #### B) Total tax expense | Tax credit in profit or loss as per the above | (1,437) | (871) | | --- | --- | --- | | Share of tax expense of equity-accounted joint ventures | – | – | | **Total tax credit** | **(1,437)** | **(871)** | The Company and its subsidiaries operate as a UK Group REIT. Subject to continuing compliance with certain rules, the UK REIT regime exempts the profits of the Group's property rental business from UK corporation tax. To operate as a UK Group REIT a number of conditions have to be satisfied in respect of the Company, the Group's qualifying activity and the Group's balance of business. Since 21 December 2017, the Group has met all such applicable conditions. The reconciliation of the profit before tax multiplied by the standard rate of corporation tax for the year of 25% (2025: 25%) to the total tax credit is as follows: #### C) Reconciliation of the total tax credit for the year | | Year to 30 June 2026 £'000 | Year to 30 June 2025 £'000 | | --- | --- | --- | | Profit on ordinary activities before taxation | 84,489 | 60,657 | | Theoretical tax at UK standard corporation tax rate of 25% (2025: 25%) | 21,122 | 15,164 | | Effects of: | | | | Investment property and derivative revaluation not taxable | (3,953) | (2,290) | | Residual business losses | (286) | 5,178 | | Disposals of investment properties | 302 | 332 | | REIT exempt income | (17,185) | (18,384) | | Deferred tax assets not recognised | (1,437) | (871) | | **Total tax credit for the year** | **(1,437)** | **(871)** | UK REIT exempt income includes property rental income that is exempt from UK corporation tax in accordance with Part 12 of CTA 2010. No deferred tax asset has been recognised in respect of the Group's residual carried-forward tax losses of £64.0 million (2025: £61.7 million) as, given the Group's REIT status, it is considered unlikely that these losses will be utilised. The Group is subject to French corporation tax on its French property rental business at a rate of 25%. --- 114 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information ## Notes to the consolidated financial statements continued for the year ended 30 June 2026 ### 13. Earnings per share Earnings per share (“EPS”) amounts are calculated by dividing the profit or loss for the period attributable to ordinary equity holders of the Company by the weighted average number of ordinary shares in issue during the period. As the LTIPs issued are dilutive instruments, we show the effect of these in diluted EPRA earnings per share. The European Public Real Estate Association (“EPRA”) publishes guidelines for calculating on a comparable basis. EPRA EPS is a measure of EPS designed by EPRA to enable entities to present underlying earnings from core operating activities, which excludes fair value movements on investment properties and derivatives. The reconciliation of IFRS earnings and EPRA earnings is shown below: | | Year to 30 June 2026 £'000 | Year to 30 June 2025 £'000 | | --- | --- | --- | | Net profit attributable to ordinary shareholders | 85,926 | 61,528 | | EPRA adjustments: | | | | Changes in fair value of investment properties | (11,800) | (28,001) | | Changes in fair value of interest rate derivatives | 208 | 18,842 | | Loss on disposal of investment properties | 1,208 | 1,327 | | Group share of changes in fair value of joint venture investment properties and derivatives | (4,218) | (468) | | Deferred tax credit | (1,437) | (871) | | Non-operating and exceptional items: | | | | Restructuring costs in relation to the acceleration of unamortised arrangement fees | 1,259 | 236 | | Termination fee | – | 20,800 | | Internalisation costs | 184 | 634 | | Fees for listing on the JSE | – | 192 | | **EPRA earnings** | **71,330** | **74,219** | | | Number^{1} | Number^{1} | | Weighted average number of ordinary shares (basic) | 1,246,239,185 | 1,246,239,185 | | Weighted average number of ordinary shares (diluted) | 1,248,569,233 | 1,246,328,616 | 1. Based on the weighted average number of ordinary shares in issue in the year ended 30 June 2026, both basic and diluted. Dilutive instruments are in relation to the expected shares to vest as at the year-end under the LTIP. | | Year to 30 June 2026 Pence per share (p) | Year to 30 June 2025 Pence per share (p) | | --- | --- | --- | | Basic and diluted EPS | 6.9 | 4.9 | | EPRA adjustments: | | | | Changes in fair value of investment properties | (1.0) | (2.2) | | Changes in fair value of interest rate derivatives | – | 1.5 | | Group share of changes in fair value of joint venture investment properties and derivatives | (0.3) | – | | Loss on disposal of investment properties | 0.1 | 0.1 | | Deferred tax credit | (0.1) | – | | Non-operating and exceptional items: | | | | Restructuring costs in relation to the acceleration of unamortised arrangement fees | 0.1 | – | | Termination fee | – | 1.7 | | Internalisation costs | – | – | | Fees for listing on the JSE | – | – | | **EPRA EPS (basic)** | **5.7** | **6.0** | | **EPRA EPS (diluted)** | **5.7** | **6.0** | ### Headline earnings per share The JSE listing requirements mandate the calculation of headline earnings (in accordance with Circular 1/2023 issued by the South African Institute of Chartered Accountants) and disclosure of a detailed reconciliation of headline earnings to the earnings numbers used in the calculation of basic earnings per share in accordance with the requirements of IAS 33 Earnings per Share. Disclosure of headline earnings is not a requirement of IFRS. --- 115 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information ## Notes to the consolidated financial statements continued for the year ended 30 June 2026 ### 13. Earnings per share continued | | Year to 30 June 2026 £'000 | Year to 30 June 2025 £'000 | | --- | --- | --- | | Net income attributable to ordinary shareholders | 85,926 | 61,528 | | Headline earnings adjustments: | | | | Changes in fair value of investment properties | (11,800) | (28,001) | | Loss on disposal of investment properties | 1,208 | 1,327 | | Group share of changes in fair value of joint venture investment properties | (2,737) | (468) | | **Headline earnings** | **72,597** | **34,386** | | Changes in fair value of interest rate derivatives | 208 | 18,842 | | Group share of changes in fair value of joint venture interest rate derivatives | (1,481) | – | | Internalisation costs | 184 | 21,434 | | Deferred tax credit | (1,437) | (871) | | Restructuring costs in relation to the acceleration of unamortised arrangement fees | 1,259 | 236 | | Fees for listing on the JSE | – | 192 | | **EPRA earnings** | **71,330** | **74,219** | | | Number^{1} | Number^{1} | | Weighted average number of ordinary shares (basic) | 1,246,239,185 | 1,246,239,185 | | Weighted average number of ordinary shares (diluted) | 1,248,569,233 | 1,246,328,616 | | Basic earnings per share (basic) | 6.9 | 4.9 | | Diluted earnings per share (diluted) | 6.9 | 4.9 | | Headline earnings per share (basic) | 5.8 | 2.8 | | Headline earnings per share (diluted) | 5.8 | 2.8 | | EPRA earnings per share (basic) | 5.7 | 6.0 | | EPRA earnings per share (diluted) | 5.7 | 6.0 | 1. Based on the weighted average number of ordinary shares in issue in the year ended 30 June 2026, both basic and diluted. Dilutive instruments are in relation to the expected shares to vest as at the year-end under the LTIP. ### 14. Dividends | | Year to 30 June 2026 £'000 | Year to 30 June 2025 £'000 | | --- | --- | --- | | Amounts recognised as a distribution to ordinary shareholders in the year: | | | | Dividends | 76,831 | 76,083 | On 3 July 2025, the Board declared a fourth interim dividend for the year ended 30 June 2025 of 1.53 pence per share, which was paid on 22 August 2025 to shareholders on the register on 25 July 2025. On 2 October 2025, the Board declared a first interim dividend for the year ended 30 June 2026 of 1.545 pence per share, which was paid on 21 November 2025 to shareholders on the register on 24 October 2025. On 8 January 2026, the Board declared a second interim dividend for the year ended 30 June 2026 of 1.545 pence per share, which was paid on 27 February 2026 to shareholders on the register on 30 January 2025. On 9 April 2026, the Board declared a third interim dividend for the year ended 30 June 2026 of 1.545 pence per share, which was paid on 29 May 2026 to shareholders on the register on 8 May 2026. On 2 July 2026, the Board declared a fourth interim dividend for the year ended 30 June 2026 of 1.545 pence per share, which was paid on 21 August 2026 to shareholders on the register on 24 July 2026. This has not been included as a liability as at 30 June 2026. ### 15. Investment properties In accordance with IAS 40 Investment Property, the Group's investment properties have been independently valued at fair value by Cushman & Wakefield, an accredited independent valuer with a recognised and relevant professional qualification and with recent experience in the locations and categories of the investment properties being valued. The valuations have been prepared in accordance with the RICS Valuation – Global Standards and incorporate the recommendations of the International Valuation Standards Committee which are consistent with the principles set out in IFRS 13. The independent valuer, in forming its opinion on valuation, makes a series of assumptions. As explained in note 2, all the valuations of the Group's investment property at 30 June 2026 are classified as 'level 3' in the fair value hierarchy defined in IFRS 13. The valuations are ultimately the responsibility of the Directors. Accordingly, the critical assumptions used in establishing the independent valuation are reviewed by the Board. --- 116 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information ## Notes to the consolidated financial statements continued for the year ended 30 June 2026 ### 15. Investment properties continued | | Freehold £'000 | Long leasehold £'000 | Total £'000 | | --- | --- | --- | --- | | At 1 July 2025 | 901,339 | 514,480 | 1,415,819 | | Property additions | 356,064 | – | 356,064 | | Capitalised costs | 21,848 | – | 21,848 | | Disposals into a joint venture | (95,965) | (135,764) | (231,729) | | Revaluation movement | (402) | 15,384 | 14,982 | | Currency exchange movement | (2,109) | – | (2,109) | | **Valuation at 30 June 2026** | **1,180,775** | **394,100** | **1,574,875** | | At 1 July 2024 | 972,016 | 796,200 | 1,768,216 | | Property additions | 28,290 | 49,700 | 77,990 | | Capitalised acquisition costs | 2,977 | 1,151 | 4,128 | | Disposals into a joint venture | (52,000) | (351,325) | (403,325) | | Other disposals | (63,500) | – | (63,500) | | Revaluation movement | 11,976 | 18,754 | 30,730 | | Currency exchange movement | 1,580 | – | 1,580 | | **Valuation at 30 June 2025** | **901,339** | **514,480** | **1,415,819** | ### Reconciliation of investment property to independent property valuation | | Year to 30 June 2026 £'000 | Year to 30 June 2025 £'000 | | --- | --- | --- | | Investment property at fair value per Group statement of financial position | 1,574,875 | 1,415,819 | | Market value of property classified as financial asset at amortised cost (note 18) | 7,470 | 7,280 | | **Total independent property valuation** | **1,582,345** | **1,423,099** | There were 12 property acquisitions during the year (2025: nine), one (2025: eight) of which was a direct purchase of 20 assets in France and two of which (2025: one) were acquisitions of a corporate structure. The corporate acquisitions are also treated as an asset purchase rather than a business combination because they are considered to be an acquisition of properties rather than businesses. There were five disposals of properties during the year (2025: eight), all of which are now held in the joint venture, of which the Group holds a 50% stake. The costs in relation to the sale of these properties are shown as a loss on disposal of £1.2 million in the year (2025: £1.3 million). Included within the carrying value of investment properties at 30 June 2026 is £11.6 million (2025: £12.2 million) in respect of the smoothing of fixed contractual rent uplifts as described in note 4. The difference between rents on a straight-line basis and rents actually receivable is included within the carrying value of the investment properties but does not increase the carrying value over fair value. Included within the carrying values of investment properties at 30 June 2026 is £2.0 million (2025: £1.8 million) in respect of the lease incentives with tenants in the form of rent-free debtors as described in note 4 and capitalised letting fees. The effect of these adjustments on the revaluation movement during the year is as follows: | | Year to 30 June 2026 £'000 | Year to 30 June 2025 £'000 | | --- | --- | --- | | Revaluation movement per above | 14,982 | 30,730 | | Rent smoothing adjustment (note 4) | (1,679) | (1,909) | | Movement in lease incentives | (751) | (405) | | Movements in capitalised letting fees | (283) | (280) | | Movement in capitalised development fees | (469) | – | | Foreign exchange movement through OCI | – | (135) | | **Change in fair value recognised in profit or loss** | **11,800** | **28,001** | --- 117 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information # Notes to the consolidated financial statements continued for the year ended 30 June 2026 ## 15. Investment properties continued ### Valuation techniques and key unobservable inputs #### Valuation techniques used to derive fair values The valuations have been prepared on the basis of market value, which is defined in the RICS Valuation Standards as “the estimated amount for which an asset or liability should exchange on the date of the valuation between a willing buyer and a willing seller in an arm’s length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion”. Market value as defined in the RICS Valuation Standards is the equivalent of fair value under IFRS. The yield methodology approach is used when valuing the Group’s properties, which uses market rental values capitalised with a market capitalisation rate. This is sense-checked against the market comparable method (or market comparable approach) where a property’s fair value is estimated based on comparable transactions in the market. #### Unobservable inputs Significant unobservable inputs include: the passing rent and net initial yield. Other unobservable inputs include, but are not limited to, estimated rental value (“ERV”) based on market conditions prevailing at the valuation date, the future rental growth – the estimated average increase in rent based on both market estimations and contractual situations – and the physical condition of the individual properties determined by inspection. A decrease in passing rent or ERV as applicable would decrease the fair value. A decrease in net initial yield would increase the fair value. #### Sensitivity of measurement of significant valuation inputs As described in note 2 the determination of the valuation of the Group’s investment property portfolio is open to judgement and is inherently subjective by nature. #### Sensitivity analysis – impact of changes in net initial yields and rental values | 30 June 2026 | UK | France | Total | | --- | --- | --- | --- | | Fair value | £1,373.7m | £201.2m | £1,574.9m | | Range of net initial yields | 4.5%-7.7% | 4.4%-8.1% | 4.4%-8.1% | | Range of rental values (passing rents or ERV as relevant) of Group’s investment properties | £0.1m-£5.3m | £0.1m-£0.9m | £0.1m-£5.3m | | Weighted average of net initial yields | 5.8% | 6.6% | 5.9% | | Weighted average of rental values (passing rents or ERV as relevant) of Group’s investment properties | £2.7m | £0.4m | £2.3m | | 30 June 2025 | UK | France | Total | | --- | --- | --- | --- | | Fair value | £1,320.4m | £95.4m | £1,415.8m | | Range of net initial yields | 5.0%-7.9% | 5.9%-7.1% | 5.0%-7.9% | | Range of rental values (passing rents or ERV as relevant) of Group’s investment properties | £0.3m-£5.1m | £0.6m-£0.9m | £0.3m-£5.1m | | Weighted average of net initial yields | 5.8% | 6.5% | 5.8% | | Weighted average of rental values (passing rents or ERV as relevant) of Group’s investment properties | £2.7m | £0.7m | £2.9m | The table below analyses the sensitivity on the fair value of investment properties for changes in rental values and net initial yields: | | +2% Rental value £m | -2% Rental value £m | +0.5% Net initial yield £m | -0.5% Net initial yield £m | | --- | --- | --- | --- | --- | | Increase/(decrease) in the fair value of investment properties as at 30 June 2026 | 31.5 | (31.5) | (124.0) | 147.6 | | Increase/(decrease) in the fair value of investment properties as at 30 June 2025 | 28.3 | (28.3) | (112.9) | 134.5 | --- 118 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information ## Notes to the consolidated financial statements continued for the year ended 30 June 2026 ### 16. Subsidiaries The entities listed in the following table were the subsidiary undertakings of the Company at 30 June 2026, all of which are wholly owned. All but those noted as Guernsey, Jersey or French entities below are subsidiary undertakings incorporated in England. | Company name | Holding type | Nature of business | | --- | --- | --- | | Supermarket Income Investments UK Limited^{3} | Direct | Intermediate parent company | | Supermarket Income Investments (Midco2) UK Limited^{3} | Direct | Intermediate parent company | | Supermarket Income Investments (Midco3) UK Limited^{3} | Direct | Intermediate parent company | | Supermarket Income Investments (Midco4) UK Limited^{3} | Direct | Intermediate parent company | | SII UK Halliwell (Midco) Ltd^{3} | Direct | Intermediate parent company | | Supermarket Income Investments UK (Midco6) Limited^{3} | Direct | Intermediate parent company | | Supermarket Income Investments UK (Midco7) Limited^{3} | Direct | Intermediate parent company | | Supermarket Income Investments UK (Midco8) Limited^{3} | Direct | Intermediate parent company | | Supermarket Income Investments UK (Midco9) Limited^{3} | Direct | Intermediate parent company | | Supermarket Income Investments UK (Midco10) Limited^{3} | Direct | Investment in joint venture | | SUPR Limited^{3} | Direct | Services company | | SUPR Management Limited^{3} | Direct | Services company | | SUPR Finco Limited^{3} | Direct | Holding company | | Supermarket Income Investments UK (No1) Limited^{3} | Indirect | Property investment | | Supermarket Income Investments UK (No2) Limited^{3} | Indirect | Property investment | | Supermarket Income Investments UK (No3) Limited^{3} | Indirect | Property investment | | Supermarket Income Investments UK (No5) Limited^{3} | Indirect | Property investment | | Supermarket Income Investments UK (No10) Limited^{3} | Indirect | Property investment | | Company name | Holding type | Nature of business | | --- | --- | --- | | Supermarket Income Investments UK (No11) Limited^{3} | Indirect | Property investment | | Supermarket Income Investments UK (No12) Limited^{3} | Indirect | Property investment | | Supermarket Income Investments UK (No16a) Limited^{3} | Indirect | Property investment | | Supermarket Income Investments UK (No16b) Limited^{3} | Indirect | Property investment | | Supermarket Income Investments UK (No16c) Limited^{3} | Indirect | Property investment | | Supermarket Income Investments UK (No17) Limited^{3} | Indirect | Property investment | | TPP Investments Limited^{3} | Indirect | Holding company | | T (Partnership) Limited^{3} | Indirect | Holding company | | The TBL Property Partnership | Indirect | Property investment | | Supermarket Income Investments UK (No19) Limited^{3} | Indirect | Property investment | | Supermarket Income Investments UK (No20) Limited^{3} | Indirect | Property investment | | Supermarket Income Investments UK (No21) Limited^{3} | Indirect | Property investment | | Supermarket Income Investments UK (No22) Limited^{3} | Indirect | Property investment | | Supermarket Income Investments UK (No23) Limited^{3} | Indirect | Property investment | | Supermarket Income Investments UK (No25) Limited^{3} | Indirect | Property investment | | Supermarket Income Investments UK (No26) Limited^{3} | Indirect | Property investment | | Supermarket Income Investments UK (No27) Limited^{3} | Indirect | Property investment | | Supermarket Income Investments UK (No30) Limited^{3} | Indirect | Property investment | | Supermarket Income Investments UK (No31) Limited^{3} | Indirect | Property investment | | Supermarket Income Investments UK (No32) Limited^{3} | Indirect | Property investment | | Supermarket Income Investments UK (No33) Limited^{3} | Indirect | Property investment | | Supermarket Income Investments UK (No34) Limited^{3} | Indirect | Property investment | | Supermarket Income Investments UK (No35) Limited^{3} | Indirect | Property investment | | Supermarket Income Investments UK (No36) Limited^{3} | Indirect | Property investment | | Supermarket Income Investments UK (No37) Limited^{3} | Indirect | Property investment | | Supermarket Income Investments UK (No38) Limited^{3} | Indirect | Property investment | | Supermarket Income Investments UK (No39) Limited^{3} | Indirect | Property investment | | Supermarket Income Investments UK (No40) Limited^{3} | Indirect | Property investment | | Supermarket Income Investments UK (No42) Limited^{3} | Indirect | Property investment | --- 119 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information ## Notes to the consolidated financial statements continued for the year ended 30 June 2026 ### 16. Subsidiaries continued | Company name | Holding type | Nature of business | | --- | --- | --- | | Supermarket Income Investments UK (No44) Limited^{3} | Indirect | Property investment | | Supermarket Income Investments UK (No45) Limited^{3} | Indirect | Property investment | | Supermarket Income Investments UK (No49) Limited^{3} | Indirect | Property investment | | Supermarket Income Investments UK (No52) Limited^{3} | Indirect | Property investment | | Supermarket Income Investments UK (No53) Limited^{3} | Indirect | Property investment | | Supermarket Income Investments UK (No54) Limited^{3} | Indirect | Property investment | | Supermarket Income Investments UK (No55) Limited^{1,3} | Indirect | Property investment | | Supermarket Income Investments UK (No56) Limited^{1,3} | Indirect | Property investment | | Supermarket Income Investments UK (No57) Limited^{1,3} | Indirect | Property investment | | Supermarket Income Investments UK (No58) Limited^{1,3} | Indirect | Property investment | | Supermarket Income Investments UK (No59) Limited^{1,3} | Indirect | Property investment | | Supermarket Income Investments UK (No60) Limited^{2,3} | Indirect | Property investment | | Supermarket Income Investments Nominee Co.3 Limited^{1,3} | Indirect | Property investment | | Supermarket Income Investments Nominee Co.4 Limited^{1,3} | Indirect | Property investment | | The Ashford Unit Trust^{2,6} | Indirect | Property investment | | Ashford PTC Limited^{1,6} | Indirect | Property investment | | The Brookmaker Unit Trust^{4} | Indirect | Property investment | | Brookmaker Limited Partnership^{7} | Indirect | Property investment | | Brookmaker (GP) Limited^{7} | Indirect | Property investment | | Brookmaker (Nominee) Limited^{7} | Indirect | Property investment | | Horner REIT Limited^{4} | Indirect | Property investment | | Supermarket Income Investments France 1^{5} | Indirect | Property investment | | Supermarket Income Investments France 2^{5} | Indirect | Property investment | | Supermarket Income Investments France 3^{5} | Indirect | Property investment | | Supermarket Income Investments France 4^{5} | Indirect | Property investment | | Supermarket Income Investments France 5^{5} | Indirect | Property investment | | Supermarket Income Investments France 6^{5} | Indirect | Property investment | | Company name | Holding type | Nature of business | | --- | --- | --- | | Supermarket Income Investments France 7^{5} | Indirect | Property investment | | Supermarket Income Investments France 8^{5} | Indirect | Property investment | | Supermarket Income Investments France 9^{5} | Indirect | Property investment | | Supermarket Income Investments France 10^{1,5} | Indirect | Property investment | | Supermarket Income Investments France 11^{1,5} | Indirect | Property investment | | Supermarket Income Investments France 12^{1,5} | Indirect | Property investment | | Supermarket Income Investments France 13^{1,5} | Indirect | Property investment | | Supermarket Income Investments France 14^{1,5} | Indirect | Property investment | | SII UK Halliwell (No1) Ltd^{3} | Indirect | Holding company | | SII UK Halliwell (No2) Ltd^{3} | Indirect | Property investment | | SII UK Halliwell (No3) Ltd^{3} | Indirect | Holding company | | SII UK Halliwell (No4) Ltd^{3} | Indirect | Holding company | | SII UK Halliwell (No5) Ltd^{3} | Indirect | Holding company | | SII UK Halliwell (No6) Ltd^{3} | Indirect | Holding company | 1. New subsidiaries incorporated during the year ended 30 June 2026 2. Subsidiaries acquired during the year ended 30 June 2026 3. Registered office: Level 19, The Shard, 32 London Bridge Street, London, United Kingdom, SE1 9SG 4. Jersey entity – registered office: 3rd Floor, Gaspe House, 66-72 Esplanade, St Helier, Jersey, JE1 2LH 5. France entity – registered office: Tour Pacific, 11-13 Cours Valmy, France, 92977 Paris La Défense Cedex 6. Guernsey entity – registered office: PO Box 186, Royal Chambers, St Julian's Avenue, St Peter Port, Guernsey GY1 4HP 7. Registered office: Broadwalk House 3rd Floor, 5 Appold Street, Broadgate, London, United Kingdom, EC2A 2DA --- 120 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information ## Notes to the consolidated financial statements continued for the year ended 30 June 2026 ### 16. Subsidiaries continued The following subsidiaries will be exempt from the requirements of the Companies Act 2006 relating to the audit of individual accounts by virtue of Section 479A of that Act. | Company name | Companies House Registration Number | | --- | --- | | SII UK Halliwell (Midco) Ltd | 12473355 | | SUPR Limited | 12892076 | | SII UK Halliwell (No1) Ltd | 12475261 | | SII UK Halliwell (No2) Ltd | 12475599 | | SII UK Halliwell (No3) Ltd | 12478141 | | SII UK Halliwell (No4) Ltd | 12604032 | | SII UK Halliwell (No5) Ltd | 12605175 | | SII UK Halliwell (No6) Ltd | 12606144 | | SUPR Finco Limited | 14292760 | | SUPR Management Limited | 16266516 | | Supermarket Income Investments UK (Midco8) Limited | 15576317 | | Supermarket Income Investments UK (No49) Limited | 15592845 | | Supermarket Income Investments UK (Midco 9) Limited | 15977428 | | Supermarket Income Investments UK (No52) Limited | 16483432 | | Supermarket Income Investments UK (No53) Limited | 16483059 | | Supermarket Income Investments Nominee Co.3 Limited | 16483261 | | Supermarket Income Investments Nominee Co.4 Limited | 16483312 | | Supermarket Income Investments UK (No54) Limited | 16537016 | | Supermarket Income Investments UK (No3) Limited | 10866364 | | Supermarket Income Investments UK (No30) Limited | 13366208 | | Supermarket Income Investments UK (No16a) Limited | 12631885 | | Supermarket Income Investments UK (No17) Limited | 12604667 | | Supermarket Income Investments UK (No5) Limited | 11343009 | ### 17. Investment in joint venture As at 30 June 2026, the Group has one joint venture investment. On 16 May 2025, the Group entered into a joint venture agreement with Blue Owl. The JV was seeded by the Group with eight of the Group's portfolio assets, valued at £403.3 million, being transferred into a new joint venture structure summarised below. Blue Owl then purchased 50% of the net assets for a consideration of £200.4 million. During the year the Group sold a further five stores with a combined investment property value of £231.7 million. The JV also independently purchased 10 Asda stores under a sale and leaseback arrangement for £196.2 million. Due to the joint control of the arrangement between the Group and Blue Owl, this is deemed to be a joint venture under IFRS 11. In June 2025, the joint venture completed a new £215.0 million secured term loan, through a banking syndicate. In March 2026, the facility was increased to £437.1 million. The interest-only facility matures on 30 June 2028, with two further one-year extension options at the lenders' discretion. The facility was priced at a margin of 1.65% above SONIA and as at 30 June 2026 is hedged at an all-in rate of 5.24% to term. The Group also earns a management fee of 0.6% per annum for the ongoing management of Blue Owl's interest in the JV. In addition to the management fee, the Group also earns fees for accountancy services and other services of £126,500 and £50,000 respectively. During the year the Group charged £2.9 million in management fees and £0.1 million in accountancy and other fees, all of which were outstanding as at 30 June 2026 (30 June 2025: £0.3 million). --- 121 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information ## Notes to the consolidated financial statements continued for the year ended 30 June 2026 ### 17. Investment in joint venture continued The joint venture ownership structure is summarised below: | Entity | Partner | Address and principal place of business | Ownership | | --- | --- | --- | --- | | **Jersey** | | | | | Arthur JV Limited | Arthur UK Holdco Limited | 22 Grenville Street, St Helier, Jersey, JE4 8PX | 50% owned by the Group | | Arthur Midco Limited | | 22 Grenville Street, St Helier, Jersey, JE4 8PX | 100% owned by Arthur JV Limited | | Olympus Midco Limited | | | | | Olympus II Midco Limited | | | | | Olympus Propco 10 Limited | | | | | Olympus Propco 11 Limited | | | | | Olympus Propco 12 Limited | | | | | Olympus Propco 14 Limited | | | | | Olympus Propco 16 Limited | | 22 Grenville Street, St Helier, Jersey, JE4 8PX | 100% owned by Olympus Midco Limited | | Olympus Propco 18 Limited | | | | | Olympus Propco 20 Limited | | | | | Olympus Propco 4 Limited | | | | | Olympus Propco 6 Limited | | | | | Olympus Propco 7 Limited | | | | | **Guernsey** | | | | | The Huddersfield Unit Trust | | Royal Chambers, St Julian's Avenue, St Peter Port, Guernsey, GY1 4HP | 100% owned by Arthur Midco Limited | | Entity | Partner | Address and principal place of business | Ownership | | --- | --- | --- | --- | | **United Kingdom** | | | | | Supermarket Income Investments UK (No4) Limited | | | | | Supermarket Income Investments UK (No6) Limited | | | | | Supermarket Income Investments UK (No9) Limited | | | | | Supermarket Income Investments UK (No28) Limited | | | | | Supermarket Income Investments UK (No43) Limited | | | | | Supermarket Income Investments UK (No47) Limited | | Level 19, The Shard, 32 London Bridge Street, London, SE1 9SG | 100% owned by Arthur Midco Limited | | Supermarket Income Investments UK (No48) Limited | | | | | Supermarket Income Investments UK (No50) Limited | | | | | Supermarket Income Investments UK (No51) Limited | | | | | Supermarket Income Investments Nominee Co.1 Limited | | | | | Supermarket Income Investments Nominee Co.2 Limited | | | | | Supermarket Income Investments UK (No7) Limited | | | | | Supermarket Income Investments UK (No8) Limited | | | | | Supermarket Income Investments UK (No24) Limited | | Level 19, The Shard, 32 London Bridge Street, London, SE1 9SG | 100% owned by Olympus II Midco Limited | | Supermarket Income Investments UK (No29) Limited | | | | | Supermarket Income Investments UK (No41) Limited | | | | --- 122 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information ## Notes to the consolidated financial statements continued for the year ended 30 June 2026 ### 17. Investment in joint venture continued | | Year to 30 June 2026 £'000 | Period from 16 May 2025 to 30 June 2025 £'000 | | --- | --- | --- | | Opening balance | 96,556 | – | | Investment in joint venture | 1,029 | 95,016 | | Group's share of profit after tax | 14,551 | 1,540 | | Dividends received | (8,957) | – | | **Closing balance** | **103,179** | **96,556** | The joint venture has a 31 December year end. For accounting purposes, consolidated management accounts have been prepared for the joint venture for the period from acquisition to 30 June 2026 using accounting policies that are consistent with those of the Group. Arthur JV Limited's share of the aggregate amounts recognised in the consolidated statement of comprehensive income and consolidated statement of financial position of the structure are as follows: | | Year to 30 June 2026 £'000 | Period from 16 May 2025 to 30 June 2025 £'000 | | --- | --- | --- | | Net rental income | 43,690 | 3,613 | | Administrative and other expenses | (3,783) | (361) | | Change in fair value of investment properties | 5,476 | 1,022 | | Change in fair value of investment rate derivatives | 2,961 | – | | **Operating profit** | **48,344** | **4,274** | | Finance income | 671 | 22 | | Finance expense | (19,912) | (1,217) | | **Profit before taxation** | **29,103** | **3,079** | | Tax charge for the period | – | – | | **Profit for the period** | **29,103** | **3,079** | | **Group's share of JV's profit for the period** | **14,551** | **1,540** | | | As at 30 June 2026 £'000 | As at 30 June 2025 £'000 | | --- | --- | --- | | **Non-current assets** | | | | Investment properties | 855,200 | 404,700 | | Interest rate derivative | 3,161 | – | | **Total non-current assets** | **858,361** | **404,700** | | **Current assets** | | | | Cash and cash equivalents | 21,961 | 11,311 | | Trade and other receivables | 750 | – | | **Total current assets** | **22,711** | **11,311** | | **Total assets** | **881,072** | **416,011** | | **Current liabilities** | | | | Deferred rental income | 9,438 | 5,865 | | Trade and other payables | 11,557 | 4,460 | | Loans due to JV partners | 226,038 | 216,845 | | **Total current liabilities** | **247,033** | **227,170** | | **Non-current liabilities** | | | | Bank borrowings | 433,465 | – | | **Total non-current liabilities** | **433,465** | **–** | | **Total liabilities** | **680,498** | **227,170** | | **Net assets** | **200,574** | **188,841** | | **Group's share of the JV's net assets** | **100,287** | **94,421** | --- 145 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information # Additional Information # What's in this section? EPRA performance indicators...146 Streamlined Energy and Carbon Reporting...147 Task Force on Climate-related Financial Disclosures...149 Glossary...161 Contact information...162 Tesco, Newmarket --- 146 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information # EPRA performance indicators The table below shows additional performance measures, calculated in accordance with the Best Practices Recommendations of the European Public Real Estate Association ("EPRA"). We provide these measures to aid comparison with other European real estate businesses. For a full reconciliation of all EPRA performance indicators, please see the Notes to EPRA measures within the supplementary section of the interim financial statements. | Measure | Definition | Performance | | --- | --- | --- | | **1. EPRA EPS** | A measure of EPS designed by EPRA to present underlying earnings from core operating activities. | 5.7 pence per share for the year ended 30 June 2026 (30 June 2025: 6.0 pence) | | **2. EPRA net reinstatement value ('NRV') per share** | An EPRA NAV per share metric which assumes that entities never sell assets and aims to represent the value required to rebuild the entity. | 98.5 pence per share as at 30 June 2026 (2025: 96.0 pence per share) | | **3. EPRA net tangible assets ('NTA') per share** | An EPRA NAV per share metric which assumes entities buy and sell assets, thereby crystallising certain levels of unavoidable deferred tax. | 87.5 pence per share as at 30 June 2026 (30 June 2025: 87.1 pence per share) | | **4. EPRA net disposal value ('NDV') per share** | An EPRA NAV per share metric which represents the shareholders' value under a disposal scenario, where deferred tax, financial instruments and certain other adjustments are calculated to the full extent of their liability, net of any resulting tax. | 88.8 pence per share as at 30 June 2026 (30 June 2025: 88.0 pence per share) | | **5. EPRA net initial yield ('NIY') and EPRA 'topped-up' net initial yield** | Annualised rental income based on the cash rents passing at the balance sheet date, less non-recoverable property operating expenses, divided by the market value of the property, increased with (estimated) purchasers' costs. | 5.9% NIY and 6.0% 'topped up' as at 30 June 2026 (30 June 2025: NIY 5.8% and 'topped up' 5.9%) | | **6. EPRA vacancy rate** | Estimated market rental value (ERV) of vacant space divided by ERV of the whole portfolio. | 0.5% as at 30 June 2026 (30 June 2025: 0.3%) | | **7. EPRA cost ratio (including direct vacancy costs)** | Administrative and operating costs (including costs of direct vacancy) divided by gross rental income. | 9.2% for the year ended 30 June 2026 (30 June 2025: 13.0%) | | **8. EPRA cost ratio (excluding direct vacancy costs)** | Administrative and operating costs (excluding costs of direct vacancy) divided by gross rental income. | 8.7% for the year ended 30 June 2026 (30 June 2025: 12.4%) | | **9. EPRA LTV** | Net debt divided by total property portfolio and other eligible assets. | 48.1% as at 30 June 2026 (30 June 2025: 36.3%) | | **10. EPRA like-for-like rental growth** | Changes in net rental income for those properties held for the duration of both the current and comparative reporting period. | 0.9% for the year to 30 June 2026 (30 June 2025: 2.4%) | | **11. EPRA capital expenditure** | Amounts spent for the purchase and development of investment properties (including any capitalised transaction costs). | £482.2 million for the year ended 30 June 2026 (30 June 2025: £82.1 million) | --- 147 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information # Streamlined Energy and Carbon Reporting The table opposite and accompanying narrative summarise the Group's Streamlined Energy and Carbon Reporting ("SECR") disclosures for FY26, in compliance with the Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018. Data for the year FY25 is also provided for comparison purposes. Compared to the previous reporting year (FY25), there has been a reduction in Scope 1 emissions from 18 tCO₂e to 12 tCO₂e (34% reduction) in the current reporting year. There has also been a reduction in Scope 2 location-based emissions from 253 tCO₂e to 173 tCO₂e (31% reduction). Due primarily to the decrease in the Group's Scope 2 location-based emissions, emissions from fuel and energy-related activities ("FERA") (Scope 3 Category 3) have also decreased, from 86 to 71 tCO₂e (18% reduction) for this reporting year.¹ Emissions from purchased goods and services (Scope 3 Category 1) have decreased from 3,882 to 1,757 tCO₂e for this reporting year, driven by a decrease in spend. As in prior year, no emissions were reported under capital goods (Scope 3 Category 2). During FY26, the Group acquired 29 new supermarket assets in the UK. This is the first year these assets have been included in the reporting. Nonetheless, Downstream leased asset ("DLA") emissions (Scope 3 Category 13), which comprise tenant Scope 1 and 2 emissions, decreased from 59,138 (including FERA) in FY25 to 48,255 in FY26 (or from 50,076 tCO₂e in FY25 to 48,255 in FY26, a 4% reduction in like-for-like reduction excluding FERA), following the inclusion of acquisitions and the exclusion of FERA emissions from this category in FY26.³ The Group's calculation of DLA emissions includes refrigerant emissions alongside energy use given the material consumption of refrigerants used in supermarkets. This goes beyond the minimum boundaries required by the Greenhouse Gas Protocol. This year's reduction in emissions is primarily driven by a reduction in refrigerant leaks. Overall, total Scope 1, 2 and 3 location-based emissions have decreased from 63,423 tCO₂e in the previous reporting year to 50,434 tCO₂e (20% reduction) in the current reporting year.⁵ 1. FERA emissions includes the well-to-tank ("WTT") and transmission and distribution ("T&D") upstream emissions from Scope 1 and 2 2. Emissions not calculated in FY23 and FY24 due to lack of data and immateriality (<1% of total emissions) 3. Values have been rounded therefore totals may not sum exactly 4. Business travel including air, rail and hotel stays that are not included in the mandatory business travel emissions 5. DLA emissions includes emission from tenant electricity, fuel and refrigerant consumption. FERA emissions associated with leased assets were included in DLA in FY25 but have been excluded in FY26. Communal spaces not under SUPR control have been excluded from DLA in FY26. 6. Values have been rounded therefore totals may not sum exactly 7. Tenant energy consumption from fuels and electricity only 8. Normalised to Scope 1 and 2 floor area: 318,951 m² in FY26 9. Normalised to Scope 1, 2 and 3 floor area: 967,300 m² in FY26 Table 1 | SECR emissions and energy consumption disclosures | Report | Previous reporting year: 1 July 2024 – 30 June 2025 (FY25) | Current reporting year: 1 July 2025 – 30 June 2026 (FY26) | | --- | --- | --- | | **Location** | **UK and France** | **UK and France** | | Emissions from the combustion of fuel and operation of facilities (tCO₂e) (Scope 1) | 18 | 12 | | Emissions from purchase of electricity (location-based) (tCO₂e) (Scope 2) | 253 | 173 | | Emissions from business travel in rental cars or employee-owned vehicles where the company is responsible for purchasing the fuel (tCO₂e) (Scope 3)² | 1 | 1 | | **Total mandatory emissions (tCO₂e)³** | **272** | **187** | | Voluntary: Emissions from fuel and energy-related activity (location-based) (tCO₂e) (Scope 3) | 86 | 71 | | Voluntary: Emissions from purchased goods and services ("PG&S") (tCO₂e) (Scope 3) | 3,882 | 1,757 | | Voluntary: Emissions from waste (tCO₂e) (Scope 3) | 42 | 87 | | Voluntary: Emissions from business travel (tCO₂e) (Scope 3)⁴ | 0.3 | 69 | | Voluntary: Emissions from employee commuting (tCO₂e) (Scope 3) | 2 | 9 | | Voluntary: Emissions from capital goods (tCO₂e) (Scope 3) | n/a | n/a | | Voluntary: Emissions from downstream leased assets (tCO₂e) (Scope 3)⁵ | 59,138 | 48,255 | | **Total gross emissions reporting (tCO₂e)⁶** | **63,423** | **50,434** | | Energy consumption used to calculate Scope 1 emissions (kWh) | 93,564 | 59,737 | | Energy consumption used to calculate Scope 2 emissions (kWh) | 1,219,830 | 1,137,234 | | Energy consumption used to calculate Scope 3 emissions (kWh)⁷ | 179,141,326 | 224,239,723 | | **Total energy consumption (kWh) (including voluntary Scope 3 reporting)** | **180,454,720** | **225,436,693** | | Intensity ratio: tCO₂e (gross Scope 1 + 2) per m² of floor area⁸ | 0.00078 | 0.00058 | | Intensity ratio: tCO₂e (gross Scope 1, 2 + 3) per m² of floor area⁹ | 0.06 | 0.05 | --- 148 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information # Streamlined Energy and Carbon Reporting continued ## Methodology The FY26 footprint within the scope of SECR reporting is equivalent to 187 tCO₂e, for mandatory emissions reporting, and 50,434 tCO₂e, including voluntary emissions, with the largest portion being made up of emissions from DLA at 48,255 tCO₂e. Mandatory emissions comprise Scope 1 emissions, Scope 2 location-based emissions and Scope 3 emissions from business travel in rental cars and employee-owned vehicles where the Group is responsible for purchasing the fuel. Anthesis (UK) Limited (“Anthesis”) has calculated the above GHG emissions to cover all material sources of emissions for which the Group is responsible. The methodology used is aligned with the GHG Protocol: A Corporate Accounting and Reporting Standard (revised edition, 2015). Responsibility for emissions sources was determined using the operational control approach. All emissions sources required under The Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 are included. Raw data captured in spreadsheets including energy spend and consumption data has been collected by the Group. Where actual consumption data was available for natural gas, electricity and refrigerants, this was used. To address data gaps, the most appropriate proxy was applied by using either previous year’s data, actual data to calculate average monthly consumption, or by applying the average floor area intensity from sites with actual data. Industry benchmarks per sqft have been used to estimate natural gas or refrigerant leaks in sites without actual data. Ancillary units electricity consumption was based on actual data from Willow Brook ancillary units, average consumption per sqft. Average floor area intensity calculations excluded high-consumption outliers; for example, estimates for carpark sites were derived solely from other carparks, which are expected to have comparable energy intensity. Fuel oil was estimated by applying the average 2024 UK fuel oil price to the budgeted spend for fuel oil. Fuel oil estimated energy was then converted to GHG emissions using Department for Energy Security and Net Zero (“DESNZ”) 2025 and 2026 GHG Reporting Conversion Factors. Scope 3 emissions have been calculated for relevant material categories using consumption data, spend data, floor area and Energy Performance Certificate (“EPC”) data. Fuel and energy-related activities include well-to-tank (“WTT”) and transmission and distribution (“T&D”) upstream emissions from Scope 1 and 2. For PG&S, Environmentally Extended Input Output (“EEIO”) has been used. Spend data was provided per supplier and mapped to 2023 DEFRA Input/Output (“IO”) categories. Where actual data was not available for DLA, industry energy consumption benchmarks were used in combination with EPC data on energy use and heating type. This year, full or partial refrigerant data was provided by all supermarket tenants. Where refrigerant data was only partially provided, it was assumed that there were refrigerant leaks for the missing periods, and actual data from prior months or years was used as a proxy to estimate refrigerant leaks. Non-food air conditioning was estimated using floor-area intensity data from EPA where actual data was not available. Refrigerant loss rate for refrigeration appliances was estimated from Direct Emissions from Use of Refrigeration, Air Conditioning Equipment and Heat Pumps from DEFRA. Communal spaces not under SUPR control have been excluded from DLA in FY26. Biogenic carbon emissions from combustion of biomass have been excluded from the Scope 1, 2 and 3 emissions reporting in table 1 above, as per the GHG Protocol they must be reported separately. Biogenic CH₄ and N₂O have been included in both the SECR table 1 and the TCFD GHG Inventory table 12 (on page 158). Biomass energy consumption resulted in 2,144.09 tonnes of biogenic CO₂ in FY26. The kWh energy consumption associated with biomass is included in table 1 above. The Group continued its efforts to enhance energy monitoring and support energy efficiency measures across both landlord-controlled areas and tenant-occupied areas during FY26. These activities included ongoing engagement with tenants to understand energy use, identify opportunities to reduce energy consumption, support the installation of energy-efficient technologies, and improve environmental performance. Further details are provided in the TCFD Report below and the Group’s standalone Sustainability Report. ## Approach to GHG emissions restatements To improve its GHG reporting, the Group may restate previously reported data to provide a more accurate representation of previous performance and its decarbonisation journey, should a significant change or error be identified, such as: - significant changes in Company structure and activities; - methodology changes such as improvements in emissions factors, data access and calculation methodologies; and - discovery of significant error(s) in previously reported data. The Group will restate the FY23 baseline used for its Scope 1, 2 and 3 emissions reductions targets if any of the changes above result in a change of 5% or more, in line with the requirements of the SBTi. The Group’s FY26 GHG inventory reflects minor methodological refinements and changes to the portfolio resulting from acquisitions. Together, these changes have resulted in an overall impact of approximately 23% on reported emissions, exceeding the 5% threshold for target re-baselining. The Group intends to incorporate these structural changes and recalculate its base year emissions during the FY27 reporting cycle. --- 149 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information # Task Force on Climate-related Financial Disclosures (“TCFD”) ## Introduction The Group has complied with the requirements of the Financial Conduct Authority’s (“FCA”) UK Listing Rules (“UK LR”) 6.6.6.(8) by including its TCFD statement for FY26 below. The Group’s statement is consistent with the four core TCFD pillars, in relation to governance, strategy, risk management and metrics and targets, and all 11 underlying specific recommended disclosures.¹ ## Governance ### Describe how the Board exercises oversight of climate-related risks and opportunities: The Board has ultimate responsibility for the Group’s strategy and risk management framework, including oversight of climate-related risks and opportunities affecting the business, as part of its wider oversight of the Group’s sustainability strategy. To ensure the effective oversight of climate-related issues and the wider sustainability strategy of the Group, the Board established its ESG Committee in May 2022, whose role helps to ensure that sustainability issues, including climate change, are discussed in sufficient detail and given appropriate focus at the Board level. The ESG Committee, chaired by Frances Davies, meets at least three times a year and supports the Board in overseeing climate-related risks and opportunities, sustainability performance, target progress and emerging regulatory developments. See the ESG Committee Report on pages 67 and 68 for more details on Committee members and how the Committee operates. The Board approves the Group’s TCFD disclosure following review and recommendation by the ESG Committee. The Board and ESG Committee are primarily informed of climate-related issues by the Group’s Sustainability Consultant² through ESG Committee meetings, at which an ESG Update Paper is presented covering climate-related risks and opportunities, progress against climate-related targets and the wider sustainability strategy. The Committee monitors the Group’s ESG performance against the KPIs set out in the metrics and targets section of this report and receives updates on key initiatives and performance indicators, including rooftop solar photovoltaic (“PV”) and EV charging deployment, EPC improvements, ESG-related investor engagement and climate transition planning. This enables the ESG Committee to oversee the Group’s progress against its sustainability strategy and climate-related objectives. The Remuneration Committee is responsible for setting ESG performance targets for executive remuneration, including climate and sustainability-related objectives, and receives updates on progress against these targets at least annually. Climate-related issues are also considered by the Board and the Group’s management team in acquisition, development and asset management decision-making. This process is described below under the managing climate-related risks section of this statement. The Group’s governance structure regarding climate risks and opportunities is summarised in Figure 1. Figure 1 | Climate-related governance structure ![img-42.jpeg](img-42.jpeg) The Group’s climate-related governance is supported by Board-approved ESG Committee terms of reference, ESG Working Group terms of reference and the Environmental and Net Zero Policy, which together support oversight, escalation and management of climate-related matters. In addition, all Investment Committee papers include a dedicated section on ESG risks and opportunities, including climate-related considerations. As part of the acquisition due diligence process, all potential investments are screened using the Group’s climate risk assessment tool to help identify and evaluate physical and transition climate-related risks and opportunities. The Board is committed to enhancing the Group’s understanding and management of climate-related risks and opportunities and has approved funding for ongoing climate-related activities. This supports forward planning and the continued delivery of the Group’s sustainability objectives. The Board recognises that appropriate training and upskilling are key enablers of the successful implementation of the Group’s sustainability strategy and the integration of climate-related considerations into investment decision-making. During the reporting period, the Group’s Sustainability Consultant delivered training to employees on the Group’s GHG inventory, emissions reduction targets, Climate Transition Plan and EPCs to support the effective management of these matters across the business. 1. ‘Recommendations of the Task Force on Climate-related Financial Disclosures’ published in June 2017 by the Task Force on Climate-related Financial Disclosures, available at: https://www.fsb-tcfd.org 2. The Group’s Sustainability Consultant is an external contractor who reports into the Group’s CEO --- 150 SUPERMARKET INCOME REIT PLC | ANNUAL REPORT 2026 Strategic Report Governance Report Financials Additional Information # Task Force on Climate-related Financial Disclosures (“TCFD”) continued ## Governance continued ### Describe management’s role in assessing and managing climate-related risks and opportunities: The Board provides oversight of climate-related risks and opportunities and delegates day-to-day responsibility for implementation of the Group’s sustainability strategy to the Sustainability Consultant, with support from the Group’s internal ESG Working Group. Climate-related risks and opportunities are integrated into investment and asset management decision-making processes to ensure potential financial impacts are identified, assessed and managed. ## Sustainability Consultant The Sustainability Consultant is responsible for the day-to-day delivery of the Group’s sustainability strategy, as approved by the Board, including the assessment, management and reporting of climate-related risks and opportunities. The role includes oversight of climate-related targets, climate-related disclosures, the Group’s GHG inventory, the independent limited assurance process, and delivery of the Group’s Climate Transition Plan, while providing climate-related advice to the Senior Management Team and the Board. ## Internal ESG Working Group The ESG Working Group, led by the Group’s Sustainability Consultant, comprises the Group’s CEO, COO and Asset Management team, and aims to meet fortnightly to discuss ESG matters. Operating under its terms of reference, the Working Group oversees the management of sustainability risks and opportunities, including climate-related risks affecting existing and prospective assets. Climate change is a standing agenda item at Working Group meetings, supporting the monitoring of climate-related developments, progress against targets and implementation of the Group’s climate strategy. The Working Group also helps to build awareness and understanding of climate-related impacts across teams. Other members of management attend meetings where relevant, and meeting minutes are circulated to the full Working Group following each meeting. The Group also seeks to ensure climate-related issues are discussed through formal engagement with the Group’s tenants, including energy consumption, data sharing, energy efficiency initiatives, planned store refurbishments and improvements to EPC ratings. Engagement occurs regularly throughout the year and is most frequent with the Group’s largest tenants. ## Strategy ### Describe the climate-related risks and opportunities the organisation has identified over the short, medium and long term In accordance with TCFD recommended disclosures, the Group has identified climate-related risks and opportunities across two key categories: (1) physical risks related to the physical impacts of climate change (acute and chronic) and (2) transition risks related to the transition to a low carbon economy (policy, legal, technology and market). ## Time horizons The Group considers physical and transition risks over three key time periods: **Table 1 | Climate-related time horizons** | Time horizon | Details | | --- | --- | | **Near term (0 – 5 years)** | The near-term time horizon (until 2030) aligns to both the Group’s near-term Science Based Target (2030) and the anticipated compliance deadline for the proposed Minimum Energy Efficiency Standards (“MEES”) regulation, with 2031 now the proposed target year for a minimum B EPC rating. Due to the 11-year weighted average unexpired lease term (“WAULT”) of its portfolio, the Group expects that there will be a limited number of lease renewals and few changes to its existing leases during this time period. | | **Medium term (5 – 20 years)** | The medium-term time horizon aligns with a period of current lease renewals for the majority of the Group’s assets, during which physical and transition risks associated with the Group’s portfolio may have greater influence on lease agreements with existing and new tenants. | | **Long term (20+ years)** | The long-term time horizon aligns with both the Group’s long-term investment planning and net-zero Science Based Target (2050) and with a potential increase in the likelihood and severity of physical climate risks impacting the Group’s portfolio. This allows for the creation of long-term strategies and planning regarding portfolio management in response to these risks. | ## Climate-related scenario analysis overview During FY26, the Group updated its qualitative and quantitative scenario analysis across the portfolio, using Munich Re Location Risk Intelligence data and IPCC SSPs to assess strategy resilience under a range of plausible climate futures including lower, moderate and higher warming outcomes. Climate scenario analysis is inherently uncertain and should not be regarded as a forecast of future outcomes, but rather as a tool to support risk management and strategic decision-making. The Group uses the Munich Re Location Risk Intelligence platform as one input to assess the potential impacts of plausible climate futures on its portfolio and strategy, recognising that climate models, methodologies and underlying datasets continue to evolve and that alternative scenario analysis tools may produce different results. Given the predominantly Full Repairing and Insuring (“FRI”) lease structure, this approach provides an efficient portfolio-wide assessment while recognising the limitations of climate value-at-risk metrics as an indicator of the Group’s direct financial exposure. Further information on the Group’s approach to climate scenario analysis is available in the risk management section of this report.